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INDUSTRIAL LOCATION 

AND 

NATIONAL RESOURCES 



DECEMBER 1942 
NATIONAL RESOURCES PLANNING BOARD 



f 




From the collection of the 



Te|inger 
V * library 




V 



INDUSTRIAL LOCATION 

AND 

NATIONAL RESOURCES 



DECEMBER 1942 



NATIONAL RESOURCES PLANNING BOARD 



UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1943 

For sale by the Superintendent of Documents, Washington, D. C. ---------- Price $1.50 



NATIONAL RESOURCES PLANNING BOARD 

Frederic A. Delano, Chairman 



Charles E. Merriam 



George F. Yantis 



ADVISORS 

Henry S. Dennison Beardsley Ruml 



DIRECTOR 

Charles W. Eliot 



ASSISTANT DIRECTORS 

Thomas C. Blaisdell, Jr. Ralph J. Watkins Frank W. Herring 

In charge of this project 

E X:E C U T I V E OFFICER 

Harold Merrill 



TECHNICAL STAFF 

Glenn E. McLaughlin, Director of Stvdy 



Gardner Ackley 
Francis M. Boddy 
Daniel Creamer 
Oscar L. Endler 
P. Sargant Florence, 
MiLBURN L. Forth 
Ruth Friedson 
WiLBERT G. Fritz 



Robert C. Gilles 
Lincoln Gordon 
Edgar M. Hoover, Jr. 
Edward S. Lynch 
Henry M. Oliver, Jr. 
John K. Rose 
Edna Sugihara 
Charles P. Wood 



u 



Executive Office of the President 

National Resources Planning Board 

Washington, D. C. 

The President, 

The White House. February 17, 1943. 

My Dear Mr. President: 

We have the honor to transmit herewith a report on the location of industry in the United 
States. The report consists of studies prepared under the general supervision of Ralph J, 
Watkins, Assistant Director, and Glenn E. McLauglilin, Chief of the Industrial Section. 
Representing the first comprehensive analysis of the subject to be made in this country, these 
studies are primarily concerned with a review of the various factors which influence plant 
location decisions and which therefore are shaping the geographic pattern of American industry. 

The American economy is and always has been an expanding economy, and each decade 
has brought with it significant changes in the geographic pattern of industry. But never before 
have these changes been so rapid as since the beginning of the defense period. By the end of 
1943 the expansion of our manufacturing facilities for war production purposes will total approxi- 
mately $18 billion, more than $15 billion of this investment representing Federal funds. 
Through this tremendous investment we have not only vastly increased the Nation's manu- 
facturing plant, but we have brought about unportant changes in the geographic pattern of 
manufacturing. The consequences of these changes will have a permanent influence on the 
growth and development of the Nation. Because of these great changes, both private industry 
and local. State, and Federal agencies of government have become increasingly aware of the 
necessity of giving carefid thought to plant location decisions. This report has been prepared 
to meet the growing need for objective analysis of locational problems. 

The report consists of an introductory summaiy and five principal parts. The first part 
is concerned with the relation between the distribution of the basic resources of the Nation and 
the locational patterns of industiy. Consideration is then given in the second section to the 
growth of our manufacturing industries and recent shifts m their geographic distribution. 

The third part of the report is devoted to an analysis of the chief production and distri- 
bution factors which have a bearing on locational decisions. An attempt is made to trace the 
locational pull of each of these elements on particular classes of industiy. Separate considera- 
tion is given to the locational pull of raw materials, power and fuels, water supply, transportation 
facilities and services, labor supply, markets and marketing facilities, capital, and management. 

The fourth part of the report analyzes organizational factors which influence the locations 
of particular industries. The factors reviewed are: size of plant, size of company, and size of 
city; degree of mtegration in the plant and in the company; and financial controls and mono- 
polistic influences. Certain special aspects of the location problem are then considered, 
including an analysis of the place of the small manufacturing firm in the Nation's industrial 
economy and the special problems and public policy questions which are involved in efforts 
to encourage and expand this type of activity. Attention is given also to the geographic 
aspects of the pricing policies of manufacturing establisliments and to governmental 
and community influences in the location of industry. 

The final section is devoted to an over-all review of principles and methods of selection of 
plant locations. 

Since the initiation of the defense program in 1940, the stafl' of the Board has reviewed and 
advised on all major proposals for ex-pansion of industrial facilities sponsored by Government 
agencies. That relationship was established mitially in response to a request from the Advi- 

m 



IV National Resources Planning Board 

sory Commission to the Coimcil of National Defense and was continued through the Office of 
Production Management and later tlu-ough the War Production Board. By designation of the 
Chairman of the War Production Board, Mr. McLaughlin has served as a member of the Plant 
Site Board and later as adviser to the Facility Clearance Board, its successor. In this work for 
the war agencies the analyses and materials developed in the present report have been 
in continual use by our staff. 

Our objective in reviewing war plant proposals has been to seek out and recommend loca- 
tions which in so far as possible would conform to the war criteria of speed in output but which 
also would create a minimum of local maladjustment and contribute toward a balanced use of 
available industrial resources in the several regions of the country. In many instances, how- 
ever, it has not been possible to meet all these requirements, since military necessity often 
required the overruling of economic criteria. The failure was in part unavoidable, since time 
was the Nation's most limited resource and speed of output the most urgent goal. 

After the war both private industry and governmental agencies will be faced with serious 
problems of minimizhig the maladjustments resultmg from wartime industrial expansion. A 
particidar responsibility will rest on the Federal Government in the disposal of its huge invest- 
ment in war plants and in promoting the conversion or adaptation of many of these war plants 
to peacetime uses. The present report will, we believe, be of material assistance to the agencies 
of government concerned with these problems and likewise to private business in its task of 
readjustment and conversion of industrial operations to peacetime uses. It is our belief also 
that regional and State planning boards and local development commissions will find this report 
of great assistance in their development work. 

The criteria outlined in the report will help to focus the interests and efforts of both private 
industry and pubhc or quasi-public development agencies on more rational locational decisions 
and, therefore, should aid in developing a more stable and productive economy. 

Respectfully submitted. 

Fbedehic a. Delano, 

Chairman. 

Charles E. Mereiam. 
George P. Yantis. 



INDUSTRIAL LOCATION AND NATIONAL RESOURCES 



CONTENTS 



Page 

Introduction 1 

Industrial Location and National Welfare 1 

Type of Activity and Locatlonal Choice 2 

Locational Patterns 2 

Interrelationships of Locational Influences 3 

Production and Distribution Factors 3 

Other Locational Factors 6 

Policy Considerations 7 

NATURAL RESOURCES AND LOCATION 



Chapter 1. Natural Resources — Minerals 


9 


Volume of Raw Materials Derived from Resources 


9 


Locationally Significant Characteristics of Natural 




Resources 


9 


Geographic Elements 


10 


Physical Features Affecting Location 


11 


Topography 


11 


Waterways 


13 


Mountain Barriers 


13 


Water Resources 


13 


Temijerature 


14 


Land Resources 


16 


Mineral Resources 


16 


Chief Mineral Resources 


19 


Mineral Fuels 


22 


Metallics 


29 


Raw Material Transportation Costs 


31 


Chapter 2. Nonmineral Resources 


32 


Food 


32 


Types and Amounts of Food 


32 


Farm Income by Tyiies of Products 


32 


Imports and Exports of Food 


32 


The Producing Machine 


32 


Centralized Interior Pattern of Production 


33 


Production Facilities in Reserve 


36 


The Corn Belt 


39 


Dairy Areas 


41 


Wheat Regions 


41 


Truck Garden Areas 


45 


Subtropical Crop Areas 


45 


Grazing and Irrigated Crops Region 


46 


Pish 


46 


Fibers, Furs, and Hides 


48 


Cotton 


48 


Other Vegetable Fibers 


50 


Wool 


50 


Mohair and Related Materials 


51 


Furs 


51 


Hides and Skins 


51 


I^umber and Other Wood Products 


32 


Forest Land Resource Patterns 


53 


Saw Timber 


54 


Lumber 


55 



Page 
Chapter 2. Nonmineral Resources — Continued. 

Lumber and Other Wood Products — Continued. 

Fuel Wood 56 

Pulpwood 56 

Imports and Exports of Wood 58 

Wood Reserves for the Future 58 

Organic Oils, Chemicals, and Miscellaneous Products 59 

MEASURES OF INDUSTRIAL LOCATION 

Chapter 3. Major Groups of Economic Activity 63 

Density of Population as an Index of Economic 

Activity 63 

Gainful Workers as a Measure of Economic Activity 63 

Major Economic Groups 64 

Agriculture 66 

Other Extractive Industries 73 

Manufacturing 75 

Services 77 

Building 77 

Transportation 78 

Trade 78 

Professional Service 82 

Personal Service 82- 

Government Service 82 

Regional Patterns of Economic Activity 83 

Conclusion 84 

Chapter 4. Shifts of Manufacturing Industries 85 

Industries Grouiied According to Changes in Em- 
ployment 85 

Types of Shifts 87 

General Characteristics of Shifting and Noushifting 

Industries 88 

Causes of Locational Shifts 91 

Nonshifting Industries 91 

Shifting Industries 92 

Labor-Cost Differentials 92 

Changing Location of Raw Materials 96 

JIarket Changes 98 

Miscellaneous Considerations 102 

Summary 104 

Chapter 5. Measures of Industrial Distribution 1^ 

Introduction 105 

Distribution by Types of Urban Centers 105 

Relative Distribution by States 106 

Degree of Localization of Industries 107 

Geographic Association of Industries 107 

Specialization and Economic Balance 120 

Changes in Locational Patterns 121 

PRODUCTION AND DISTRIBUTION FACTORS 

Chapter 6. Materials 125 
Types of Materials 125 
Origin of Manufacturine; Materials 126 
Relation of Cost of Materials to Value of Manu- 
factured Products 127 



VI 



Contents 



Page 
Chapter 6. Materials — Continued. 

Regional Variation of the Cost of Materials 128 
Probable Influence of Materials on Location of 

Industry 128 

Cost of Materials for Industry Groups 129 
Relation of Cost of Materials to Other Cost Items for 

Selected Industries 130 
Raw-Materials-Consuining vs. Semimanufactured- 
Material Consuming Industries 133 
Combination of Materials 136 
Raw-Material-Consuming Industries 137 
Semimanufactured-Material-Consuming Industries 141 
Sequence of Materials 143 
Specialization of Materials 143 
Substitution of Materials 144 
Physical Changes of Materials in Processing 14.5 
Recovery of Scrap Materials 147 
Foreign Sources of Materials 149 
Balancing of Requirements 1.D4 

Chapter 7. Power and Fuels 1-56 

Power and Fuel as Locational Factors in Manufac- 
turing Industries 156 
Physical Consumption 157 
Costs 159 
Orientation Toward Fuel Resources 160 
Trend Toward Electrification 168 
Orientation Toward Power 170 

Chapter 8. Water 181 

Influence of Water Supply on Plant Location 181 

Industrial Uses of Water 181 

Supply and Quality of Water 184 

Alternative Uses of Water 185 

Chapter 9. Transportation ' 186 

Introduction 1S6 
Influence of Transportation on the Exploitation of 

Natural Resources 186 
Influence of Transiwrtation on the Location of Manu- 
facturing 187 
Economies of Scale and Differential Production Costs 188 
Immobility of Production Resources and Industrial 

Location 189 

Geographic Pricing Policies and Transportation 190 

Influence of Transportation on Regional Development 192 

Dominance of the Northwest 196 

Influence of Transportation on Urban Concentration 196 

Service 196 

Rates 198 

Influence of Passenger Transportation on Location 201 

Summary 201 

Chapter 10. Markets and Marketing 203 

Market Patterns 204 

Tendencies in Marketing 208 

Flow of Goods to Markets 212 

Concentration and Dispersion of Product 215 

Relation of Markets to Production 216 

Relation of Buying and Selling Units 217 

Initiative in Purchase and Sale 218 

Division of Markets 219 

Summary 220 



Chapter 11. Labor 

Distribution and Character of Labor 
Importance of Labor Costs 
Geographical Differences in Labor Costs 
Influence of Specialized Skills on Location 
Technological Changes in Labor Force 
Conclusion 

Chapter 12. Capital 

Conversion and Mobility of Capital 
Limitations of Personal Experience 
Venture Capital 

Influence of Financing Methods on Location 
Influence of Branch Plants 
Effect of Investing Local Capital 
Domination of Capital 
General Considerations 

Chapter 13. Management 

Importance of Management 

Regional Differences in Management 

Effect on Location of Availability of Management 

Summary 

ORGANIZATIONAL FACTORS 

Chapter 14. Size of Plant, Concern, and Production 
Center 

Scale of Production 

Limitations Upon The Economies of Large-Scale 
Production 

Economies of Local Concentration of Industry 

Relative Localization of Immediate vs. Ultimate 
Markets 

Labor Costs and Localization 

Limitations Upon Economies of Industrial Concen- 
tration 

Relation of Large-Scale and Concentration Economies 
and Diseconomies to Location 

Variation of Plant Size According to Type of Location 

Relative Cluster and Scatter of Plants in Different 
Industries 

Industries with Clustered Plants 
Industries with Scattered Plants 

Conclusion 

Chapter 15. Integration of Processes in Plant, Concern, 
and Production Centers 

Unit of Integration 

Firm Integration 

Locational Integration 

Plant Integration 
Types of Integration 
Divergent Functions 

Alternative Products of the Same Material 

Byproducts 

Similar Production Requirements or Techniques 

Complementary Use of Production Factors 
Convergent Functions 

Vertical Integration (Successive Functions) 
Summary of Locational Aspects of Integration 
Trends of Integration and Their Locational Impli- 
cations 
Branch-Plant Organization in Selected Concerns 
Implications of the Analysis of Scale and Scope 



Page 
221 
221 
222 
223 
226 
229 
230 

232 

232 
233 
233 
234 
234 
235 
236 
237 

239 

239 
239 
240 
241 



242 
242 

242 
246 

246 
249 

251 

251 
251 

254 
255 
257 

261 

262 
262 
262 
263 
264 
264 
265 
265 
266 
268 
268 
269 
270 
274 

276 
279 
279 



Contents 



\rL 



Page 

Chapter 16. Financial Controls and Monopolistic In- 281 
fluences 

Monopolistic Influences 281 

Control of Associated Processes 284 

Financial Controls 285 

Summary 286 



Chapter 17. Small Manufacturing Firms 287 

Economic Significance of Small Manufacturing Firms 287 

Industries in Which Small Firms Predominate 290 

Locational Characteristics of Small Industries 292 

Factors Favoring Small Firms 296 

Functional Specialization 296 

Influence of Location on Size of Firm 297 

Factors Which Weaken Small Firms 298 

"Cutthroat" Competition 298 

Inadequate Sources of Capital and Credit 298 

Lack of Research Facilities 300 

Special Problems Under War Economy 300 

Policy Considerations 300 

Chapter 18. Price Policies 302 

Types of Geographical Pricing Policies 302 

Factors in the Choice of Price Policies 304 

Potential Competition 304 

Differentiated Products 305 

Standardized Products 306 

Exclusive Area Systems 306 

Equalization Schemes 307 

Basing Point Pricing 307 

Uniform Delivered Prices and Zone Prices 308 

Locational Results of Price Policies 309 

Effects on Industry Employing Policy 309 

F. 0. b. Versus Equalization Systems 309 

Locational Effects Upon Consuming Industries 313 

Conclusion 316 

Appendix A : Relation of Consumer Demand to 

Delivered Prices of Monopolist 317 
Appendix B : Out-of-Pocket Costs and Value of 

Product, as Related to Pricing Sj-stem 317 



Page 

Chapter 19. Governmental and Community Influences 318 

Federal Governmental Influences 318 

Relationships Among Industrial Costs in Various 

Areas 318 

Labor Costs 318 

Material Costs 320 

Power and Fuel Costs 320 

Transportation Costs 321 

Capital Costs 321 

Income Relationships Among Areas 321 

Revenues and Expenditures 321 
Other Means of Altering Relative Heights of 

Areas' Incomes 322 

Means Helping or Hindering Certain Industries 323 

Protective Tariffs 323 

Excise Taxes 324 

Federal Expenditures 324 

State and Local Influences 325 

State Influences 325 

Local Influences 326 

Promotion by Public Utilities 327 

THE LOCATIONAL PROCESS 

Chapter 20. The Selection of Locations 328 

Types of Changes in Locational Patterns 328 

Location Factors 329 
Techniques for Measurement of Relative Importance 

of Factors 330 
Classification of Industries According to Dominant 

Locational Factor 332 

Choice of Location 332 

Formulation of Production Requirements 333 

Geographic Variations in Costs 333 

Sources of Information 334 

Comparative Evaluation of Locations 334 

Shortcuts in Finding a Location 336 

Locational Pattern and Public Policy 337 

Appendix : Case Studies in Plant Location 349 

International Nickel Co. 349 

International Harvester Co. 350 

Yankee Metal Products Corporation 352 

Index 353 



INTRODUCTION 



Industrial Location and National Welfare 

The mobilization of the American economy for war 
has necessitated a vast expansion in our facilities for 
producing- militai-y equipment. Armament and muni- 
tions plants in existence before the war, even when 
utilized to the fullest extent, could produce only 
a fraction of the required output. Consequently, we 
have had to convert ordinary peacetime plants into 
producers of war goods, to enlarge both old war plants 
and converted plants, and to construct an unprece- 
dented capacity in new plants. 

Under these developments the Federal Government 
has necessarily influenced materially the geographic 
distribution of industry. The selection of sites for 
Government-owned plants, including those placed under 
private operation, has been an immediate governmental 
responsibility ; and the choice of locations for privately 
owned plants, when financed by Federal funds, has also 
been subject to considerable governmental control. 
But the wartime influence of Government on the loca- 
tion of industry has by no means stopped here. 
Important, though less direct, locational effects have 
resulted from the granting of certificates of necessity, 
allowing the rapid amortization for tax purposes of 
investments in approved new productive facilities; 
from the allocation of war orders, including the 
encouragement of subcontracting; and from the direct 
restriction of production for civilian consumption. 

Before the war, the influence of the Federal Govern- 
ment on industrial location was almost entirely indirect 
and unplanned. This influence developed in connec- 
tion with policies directed primarily towards other 
objectives, for example, regulation of transportation, 
development of power resources, or establishment of 
labor standards. Local governments, to be sure, 
formulated some direct policies, such as zoning ordi- 
nances, but local efforts to attract industry and control 
location were of limited scope and were made without 
consideration of their effects on other communities. 

In the location of war plants, primary emphasis has 
been placed on the strategic factors of speed of produc- 
tion and, to a lesser extent, safety from enemy attack. 
These requirements have not and could not in many 
instances be met with full regard for economic and so- 
cial considerations. Even though the plant site groups 
in the war production agencies have been able to in- 

414780—43 2 



fluence the location of many industrial facilities in 
order to make effective use of available production fac- 
tors, serious over-concentration of workers has occurred 
in certain areas and under-employment in others. Con- 
sequently, major readjustments between population 
and industry will be required after the war if a high 
degree of employment is to be achieved on a peacetime 
basis. 

In order to effect these I'eadjustments, local as well 
as national governmental agencies may well concern 
themselves much more directly than they did before the 
war with problems of industrial location and economic 
development. The task of aiding private industry in 
providing economic opportunities for men to be demo- 
bilized from the armed forces and from munitions in- 
dustries wjll demand careful attention both to the 
conversion of war production centers to peacetime 
activities and to the establishment of new industries 
based on the resources of underdeveloped sections of 
the country. 

The location of industry presents issues of .such con- 
tinuing importance to the Nation as a whole that the 
National Resources Planning Board has undertaken a 
comprehensive study of the subject. Analyzed in this 
volume ai'e the various factors that enter into locational 
decisions and hence shape the geographic structure of 
American industry. Attention has been directed pri- 
marily to the locational behavior of manufacturing in- 
dustries rather than to trade and other branches of non- 
manufacturing activity. Emphasis has thus been 
placed on the more active and independent factors of 
the locational problem. 

In so far as this analysis leads to a better understand- 
ing of location problems, it may provide needed criteria 
for private business as well as a base for evaluating the 
extent and direction of desirable aid from local and 
national governmental agencies in the post-war period. 
Wartime locational developments will be analyzed in 
detail in a succeeding volmne which, in addition, will 
discuss and advance proposals for dealing with loca- 
tional and other problems of post-war industrial 
readjustment.^ 



"Reports liealing with recent industrial developments in four 
regions -Middle .Vtlantic, Mountain States, Pacific Northwest, and 
Pacific Southwest — have been prepared for the National Resources 
Planning Board hy the planning commissions of the areas concerned. 
Copies are ohtainable from the Superintendent of Documents, Wash- 
ington, D. C. 



National Resources Planning Board 



Type of Activity and Locational Choice 

Broadly speaking, the gainfully occupied population 
is distributed among extractive industries, manufactur- 
ing, and the various types of services. The effects of 
industrialization and urbanization have been a great 
reduction in the proportion of total workers found in 
the extractive industries; an increase, until recent 
years, in the proportion absorbed by manufacturing; 
and a continued rise in the proportion occupied in 
service pursuits. This development has an important 
bearing on the definition of locational policy because 
of the varjang degree to which the location of the sev- 
eral branches of economic activity is fixed or subject 
to direction. 

The geographic pattern of the three groups of in- 
dustries is governed by different factors. Agriculture 
and the other extractive industries are necessarily tied 
closely to the resources they exploit, although in some 
cases the -wide distribution of these resources permits 
other factors to play a large part in the selection among 
alternatives. Service activities must, for the most 
part, stay close to the consumer so that their distribu- 
tion tends to correspond roughly with that of popula- 
tion or, in some instances, more closely with that of 
consumer income. Some service industries are found 
mainly in a few large urban centers. The location of 
manufacturing activity as a whole is not subject to 
any such simple generalization. Although certain man- 
ufacturing industries do owe their location to the 
dominant influence of a jDarticular requirement, the 
majority cannot be properly treated without careful 
consideration of a multitude of production and organi- 
zational factors. Some are closely tied to their mar- 
kets; their regional distribution, therefore, does not 
differ materially from that of most of the services. 
Other industries are obliged to locate near an appro- 
priate labor supply or near cheap power. A number, 
usually because of the great loss of weight in manufac- 
turing, have to establish themselves near the source of 
materials. 

In this volume consideration has been given pri- 
marily to the factors underlying the general problem of 
industrial location, rather than to an analysis of the 
location of specific industries. 

Locational Patterns 

The geographic structure of industrial activity has 
been derived basically from the location of natural 
resources and from historical and physical factors 
directing the course of population settlement, including 
the geographic features which determine transportation 



routes. As a country becomes industrialized, great dif- 
ferences may appear between the geographic pattern 
of industry and the distribution of natural resources, 
because the development of improved transportation, 
and technological progress generally, make possible the 
manufacture of complex products required for a high 
standard of living. 

Eich as the United States is in natural resources, 
those which can be profitably worked are fairly con- 
centrated. Such concentration is greatest in mineral 
deposits, so that mining is considei-ably localized. Bi- 
tuminous coal mining, for example, is centered in 
Pennsylvania and West Virginia to such a degree that 
these two States, with less than one-tenth of the Na- 
tion's gainfully employed, have one-half of the labor 
force thus engaged. Again, the bulk of our iron ore 
supplies is secured from the deposits in the Lake 
Superior district. Even in agriculture, owing to 
diversities in soil, climate, topography, markets, his- 
torical developments, and other factors, there is much 
regional concentration of particular kinds of produc- 
tion as well as a considerable variation in total produc- 
tion. We have, for instance, wheat, corn, cotton, and 
citrus fruit belts. In most of the area east of the 
Appalachians, the lower productivity of soil and the 
larger expenditure necessary for upbuilding than in the 
Mississippi Valley (the Corn Belt, for example) have 
tended, with the progress of settlement, to restrict 
agricultural production to those lines which derive 
maximum advantage from proximity to large consum- 
ing markets. Accordingly, the share of this area in 
total agi'icultural production has declined. In the Great 
Plains area and a large part of the western Mountain 
States, low rainfall restricts agriculture largely to 
stock raising, except for the limited and scattered areas 
where irrigation is practicable. 

The physical environment has exercised an important 
influence on the location of manufacturing as well as 
of agriculture. About one-third of the United States 
is so mountainous as to be comparatively unfavorable 
for the development of any considerable volume of 
manufacturing. Waterways, on the other hand, have 
attracted industry to such a degree that the great 
majority of our large industrial cities grew up along 
the two coasts, the Great Lakes, or the princijDal rivers. 
Although climate may favor or discourage the estab- 
lishment of certain processes and may also affect the 
productivity of workers, its influence on location is 
far less in industry than in agriculture. 

Manufacturing is concentrated mainly north of the 
Ohio River and east of the Mississippi River. Al- 
though the States in this section contain only one-half 
of the gainfully employed population, they account for 
no less than 70 percent of all workers engaged in manu- 



Industrial Location and National Resources 



factuiing. INIanufacturing is, however, reaching out 
into new regions and particular industries are being 
redistributed. Even over comparatively short periods 
such movements may attain appeciable volume. For 
example, in the cyclically comparable years 1929 and 
1937, employment remained at uniform levels in only 
a few industries. Not only did the nunib<:-rs employed 
in the great majority of industries expand or contract, 
but there was also much change within industries in 
terms of employment opportunities in different regions 
of the country. In the process of redistribution, the 
most conspicuous gains occurred in the Southeast at 
the expense of industries in the Northeast. Within the 
manufacturing belt, important cross movements took 
place between the Northeast and Midwestern States, 
but with a balance in favor of the latter. Labor-cost 
differentials and market considerations predominated 
as causes of these shifts. The development of new 
sources of raw materials accounted for the shifts in 
about one-quarter of the industries and one-fifth of the 
wage jobs. 

The extent to which manufacturing operations may 
be carried on at a distance from raw materials is in- 
dicated by the fact that, except for coal, these materials 
are produced in the main outside the manufacturing 
belt. The location of Appalachian coal reserves com- 
bined with the low-cost water transportation of iron 
ore from Lake Superior have determined the major 
concentration of the heavy industries. Tlie geo- 
graphic drawing power of most of the other mineral 
resources is limited for the most part to primary refin- 
ing; their influence on manufacturing is restricted by 
the small quantities used, high unit values, and the 
necessity of using them in combination with other 
materials. Petroleum has had only secondary loca- 
tional effects, owing in part to the revolutionary 
change in transportation by pipe line or tanker. In 
recent years, cheap natui-al gas in the Southwest has 
become an important attracting force. 

Interrelationships of Locational Influences 

The selection of a location for a manufacturing plant 
usually requires the careful weighing of a number of 
interrelated factors. Production and distribution prob- 
lems require consideration of the sources of materials, 
fuel, and power; the need for special labor skills, pre- 
vailing wage levels, and the efficiency of labor; avail- 
ability of management; ti'ansportation facilities, serv- 
ice, and costs; and the nature, location, and extent 
of the market. Certain organizational factors must 
also be considered, such as the most satisfactory size 
for the plant, the extent to which operations can be in- 
tegrated with related processes, and the proximity to 
other industries. Thus, the industrialization of an 



area leads to cumulative advantages for industries in 
related and even in unrelated fields. Sometimes the 
choice of a location may be influenced by inducements 
offered by local bodies or governments, by Federal or 
State laws or regulatory policies, and by price policies, 
or by the personal preferences of some controlling 
individual or group. 

The location of a plant or the locational pattern of 
an industry cannot always be attributed to the logical 
weighing of a great number of factors. In some in- 
stances the location of an industry in a given place may 
be attributable to little more than historical accident. 

A shift in the location of a plant is likely to entail 
the sacrifice of much of the investment in the old site 
and building, a serious interruption to operations, the 
loss of valuable employees, and considerable expense 
for moving equipment and records. Add to these the 
force of inertia, and the offsetting advantages elsewhere 
may have to appear great indeed to induce a move. 
Accordingly, changes in the locational pattern of an 
industry are effected only to a comparatively small 
extent by the actual transfer of the equipment and 
personnel of a plant from one place to another. Such 
changes come about mainly through the expansion of 
the industry in new and more favorable locations and 
its gradual decline in old centers, owing to insolvencies 
or obsolescence and failure to replace equipment. 

In some manufacturing industries there may be little 
choice among places or regions in the selection of a 
location. The industries enjoying the least freedom 
of location are those in which dominant impoi'tance 
attaches to cheap and i-eady access to raw materials, 
fuel, power, or markets, to the availability of certain 
kinds of labor, or to some other particular factor. 
There are relatively few industries in which one loca- 
tion factor far outweighs any other. Moi-e commonly, 
several factors play an important part in the determi- 
nation of a location. Under this condition, there is a 
wide scope for the excise of judgment and discretion. 
It is, therefore, with respect to these "foot-loose" manu- 
factures that public policy can exercise its greatest 
influence in directing changes in geographic patterns 
in accordance with social objectives. 

Production and Distribution Factors 

Contrary to common belief, the great majority of 
manufacturing plants do not use basic raw materials 
directl}-; they obtain partly manufactured articles and 
process or assemble them further for various uses. 
Only about 20 percent of the industries covered by the 
Census of Manufactines are direct processors of basic 
raw materials. But since most of these use mainly one 
or two materials, the locational pull toward sources of 
the predominant materials in this group is on the whole 



National Resources Planning Board 



powerful. The pull is strongest where the primary 
material is perishable, or where processing results in 
great reduction in weight or bulk. Thus, weight loss 
and perishability of raw materials explain the location 
of fruit and vegetable canneries and sugar-beet re- 
fineries in or near growing areas. Similarly, the ex- 
tremely small metal content of most nonferrous ores 
constitutes the main reason for smelting them close to 
the mines. Loss of weight is much less in the smelting 
of iron ores. Moreover, the iron industry requires 
large quantities of fuel, which are consumed almost 
entirely in the process of smelting. Thus the greater 
part of the iron and steel industry is scattered 
through a belt stretching from the major sources of 
iron ore to the sources of coking coal, with points of 
concentration determined largely by the market factor. 
Lack of a large market explains why a relatively small 
part of the industry is located at Lake Superior port 
areas where, owing in part to the influence of cheap 
water transportation for coal, the assembly costs are 
relatively favorable. In recent years, the use of scrap 
metal has grown in importance, particularly in the 
steel industry where sufficient supplies of scrap iron 
and steel have become available to make possible the 
establishment of small plants which are dependent on 
scrap for their basic material. These plants, neces- 
sarily located chiefly with respect to the sources of 
scrap, to fuel requirements, and to markets, are in 
many instances far from both the main steel producing 
centers and the iron mines. 

Industries which depend largely on foreign sources 
for their raw materials tend to be attracted to seaboard 
locations, not entirely because of loss of weight in 
processing, for in many instances there is no consider- 
able loss, but because of a combination of reasons, 
including prompt delivery, convenience of assembly, 
and nearness to major markets. Other factors some- 
times lead to inland locations for industries of this 
type; for example, the rubber tire industry. 

Most of the industries which work on partly manu- 
factured goods instead of basic raw materials fabri- 
cate a product or products combining many different 
raw materials. Industries of this kind are therefore 
rarely located with special regard to any particular 
raw material; if the supply of such goods is secured 
largely from a single area, the industry may be at- 
tracted there. These industries, therefore, tend to 
settle in large industrial centers which offer advantages 
both for the assembly of the varied materials and the 
distribution of the product. Where the product is more 
bulky than the materials from which it is made, the 
pull on the industry towards the market is likely to be 
especially strong. 



Almost all plants must be located where they can be 
assured of a dependable and continuing supply of 
power. As long as this need can be met, relatively 
low power rates may not of themselves constitute a 
strong locational inducement since power is often a 
minor cost element. Tliis is not true, however, of most 
electrometallurgical and electrochemical processes, 
such as aluminum reduction and the manufacture of 
labrasivea For these^ plants have been established 
where power is available in its cheapest form, typically 
in the vicinity of favorable hydroelectric sites. 

The increasing availability of cheap and rapid trans- 
portation has enabled industry to assemble a variety 
of materials from widely scattered sources and to dis- 
tribute them to a wide market. Such transportation 
facilities have contributed to the development of mass 
production methods, and have promoted specialization 
of workers, plants, and regions. At the same time, 
improved transportation has provided locational free- 
dom for industry and fostered industrial growth in 
areas distant from the sources of the basic raw 
materials. 

An area lacking adequate transportation facilities 
cannot attract an industry manufacturing products 
using a great variety of materials and intended for an 
extensive market. It is important for such industries 
to locate where the aggregate costs of assembling ma- 
terials and distributing products to the market will 
approach a minimum. If processing involves sub- 
stantial loss of bulk for a major raw material this 
minimutn point is likely to be nearer the source of 
materials. If it costs more to transport the finished 
product than the raw material the minimum point 
probably will be nearer the market. The greater the 
number of materials used, the greater is the likelihood 
that the point of minimum transportation costs will 
be close to the market or at some intermediate point 
between materials and markets rather than adjacent to 
any particular material. Obviously, the locational in- 
fluence of low transportation costs may be out- 
weiglied by some other consideration. Thus, among 
alternative locations, one which provides a more 
abundant and cheaper supply of labor or power may 
be preferable, notwithstanding a disadvantage in 
transportation costs. 

The point of minimum transportation costs in any 
instance, depends upon the rate structures of the avail- 
able carriers. Thus, the fact that transportation rates 
are typically higher for finished goods than for raw 
materials tends to favor orientation of manufacturing 
towards the market. Claims have always been made 
that some areas have been favored and others preju- 
diced by the relationships between rates for different 
distances, directions, regions, or products. Every 



Industrial Location and National Resources 



change in these relationships maj' shift minimum-cost 
transportation points for some industries, and any 
special transportation privilege may affect locational 
patterns. The milling-in-transit practice, for example, 
has enabled mtermediutely situated flour mills to sur- 
vive in competition with mills oriented with respect 
to either raw materials or markets. The locational 
effects of the development of motor trucking and of 
differences in rates for rail and highway carriage can- 
not be easily generalized. Broadly, however, it may 
be said that trucking has reduced rate differentials 
between fabricated products and raw materials and has 
thus tended to lessen the pull of the market on manu- 
facturing; that highway transportation has diminished 
the ability of the railroads to manipulate rates so as 
to influence the location of light industry; and that 
the truck has added generally to industry's locational 
freedom by making nonrailway points accessible. 

The quality, cost, and speed of passenger transporta- 
tion also affect the location of economic activities. 
Improvements in all these directions, particularly 
through the universal use of the automobile, have 
eased the problem of labor supply for many industries 
by increasing the commutation radius for labor. They 
have also facilitated the establishment of manufac- 
turing plants on the outskirts of cities. On the other 
hand, such improvements, by widening consumer 
markets, have diverted trade from small villages to 
towns and cities and have generally intensified the 
urbanization of industry. Among the considerations 
in the location of branch plants, the speed with which 
a busy executive can now reach them through the use 
of commercial or private planes may be important. 

Producers sell their products directly to the ultimate 
consumers only to a relatively small extent. Goods are 
usually channeled through a succession of intermediate 
stages in the production process, and subsequently from 
producers to consumers through one or more middle- 
men. The development of this complex marketing 
organization — a development promoted by modern 
transportation — has enabled manufacturing industries 
to locate at a distance from resources and to serve 
wider markets. The elaboration of marketing machin- 
er3' has thereby contributed to specialization in jiro- 
duction and to the growth of industries which depend 
for their existence on ability to assemble at one point a 
number of materials drawn from scattered sources. 

The market pattern is largely determined for pro- 
ducers by a variety of economic ciiTumstances and 
forces over which they as individuals can exert little 
control. They must therefore take this pattern as given 
and, as far as may be necessary, adapt their location 
to it. Reference has already been made to a number 
of influences which tend to work for or against market 



orientation. But it must be borne in mind that manu- 
facturing establishments as a rule sell their products to 
distributors or to other manufacturers. The industries 
which are market oriented are for the most part drawn 
toward sucli intermediate markets. Relatively few are 
tied directly to consumer markets; in the main these 
industries are producing consumer goods for which 
speed of delivery or close contact between producer 
and consumer are essential. 

Plants which are under no physical necessity to locate 
near some natural resource or special market may be 
drawn to a particular location largely because of the 
presence of certain forms of skilled labor or of an 
abundant sujijily of relatively cheap labor. "When an 
industry requiring considerable skilled labor has, for 
one reason or another, grown up in a certain area, 
the existence of a trained labor force may provide 
a major inducement for a new establishment in the 
industry to locate there. This inducement will be 
more powerful when the proportion of skilled 
workers to total labor needed is high, when the period 
needed to train new workers is long, and when there 
is little prospect of being able to dispense with skilled 
workers through technical innovations, and slight pros- 
pect that they can be induced to move. In all these 
respects, the trend has been to make labor orientation 
on the basis of skill a locational factor of decreasing 
importance in most manufacturing industries. 

The existence of a potential labor force which is cur- 
rently unutilized or imderutilized may sometimes 
attract industries to particular locations. Thus, the 
establishment of silk mills in certain towns of the 
Pennsylvania anthracite i-egion is largely attributable 
to the lack of employment opportunities for women in 
that region. Similarly, the presence of a surplus labor 
supply and the lack of sufficient employment oppor- 
tunities in agriculture have tended to draw manufac- 
turing plants to manj' small towns and rural areas. 

The labor costs relevant to a locational decision are 
obviously costs per unit of output and not merely wage 
rates. But disparities in unit wage costs are ultimately 
an important locational consideration only insofar as 
they contribute to appreciable differences in the total 
cost of producing and supplying a unit of the product 
to the market. In areas where labor is relatively 
cheap, it is also likely to be relatively free from or- 
ganized or legislative control. Both these character- 
istics have influenced the drift of certain industries, 
notably textiles from the North to the South. 

Capital, in the sen.se of funds available for invest- 
ment, is by far the most mobile of all the factors of 
production. Because capital tends to flow freely in 
search of the most profitable opportunities for em- 
ployment, the question of its availabilitv can often be 



6 



National Resources Planning Board 



excluded from consideration in making a locational 
decision. The best way to attract capital is to make 
the choice which seems most promising on all other 
grounds. This is especially true where a large pro- 
jected plant is able to secure funds from the open capital 
market through the flotation of securities for which a 
listing can be secured on a major stock exchange, for 
the location will normally be selected before the issue 
is placed on the market. Even if this has not been 
done, it is unlikely that any prospective investor or 
group of investors could influence the selection by 
making subscription to the issue contingent on the 
choice of one location rather than another. Occasion- 
ally, however, a small group owning a majority stock 
interest in an enterjjrise has been instrumental in ex- 
panding the enterpi'ise at new locations which have 
been selected with greater regard to some special per- 
sonal advantage than to any special benefit of the 
enterprise as a whole. 

When the needed capital ii too small for a public 
offering of securities, and an appeal to a local group 
or other selected individuals becomes necessary, the 
choice between a number of likely locations may fall 
on the place where the necessary capital is available 
on the most favorable terms. Under similar circum- 
stances an investing gi'oup may occasionally require 
that the new facilities be placed near other operations 
in which they are interested. Investors M'ho are asked 
to assume exceptional risks, such as those involved in 
financing the exploitation of most new inventions, 
may insist on a determining voice in tlie selection of a 
location for the venture. 

Other Locational Factors 

The location of industry cannot be considered solely 
from the point of view of production and distribution 
factors such as labor, power, materials, and markets. 
A number of influences spring from other factors, in- 
cluding the size and scope of firms and establishments, 
financial policies, monopolistic controls, pricing poli- 
cies, and governmental and community policies. 

The advantages of concentrating production in large 
plants, large firms, or large industrial centers vary 
from industry to industry. In general, a compromise 
must be sought between (1) the economies of greater 
specialization of operations, mass purchasing, central- 
ized service, and availability of skilled labor, and (2) 
the diseconomies of complexity and inflexibility in large 
enterprises, as well as the high transport costs and 
rents likely to be associated with the centralization of 
operations. The relative force of these opposing con- 
siderations determines the typical size of plants, 
firms, and production centers in different industries 
and different regions. Whera transportation costs are 



secondary and where advantages of centralization are 
great, the locational jjattern is likely to consist of a 
few very large clusters of plants ; where transportation 
costs on materials are dominant, plants are likely to 
be distributed regionally in relation to those materials, 
but with varying degrees of local concentration within 
the region. For industries in which delivery costs are 
relatively more important, plants are likely to be dis- 
tributed in closer relation to markets, and the larger 
plants will be found concentrated locally in the heavier 
consuming areas. 

The organization of production involves interprod- 
uct, interplant, and interfirin relationships which Ln 
turn condition the size of operations in making single 
products. The relationship between products is com- 
paratively simple in cases where one product is the 
material, or can be used as a substitute for another or 
joins with it in the manufacture of a third prod- 
uct. Somewhat less obvious relationships exist be- 
tween products which are economically produced in 
the same plant, firm, or location. Examples of these 
relationships include byproducts utilization and dove- 
tailing of fluctuating labor or equipment require- 
ments. The scale of operations and the locational pat- 
tern are likely to be modified by the advantages of 
combining ojDerations in one plant or of integrating the 
units of one concern. Even in the latter case, the 
tendency is to bring operations closer together 
geographically. 

A vertical integration of production occurs where 
two or more successive steps of a complex manufactur- 
ing process are consolidated. Economies of vertical 
integration in single firms are probably as great in the 
iron and steel industry as anywhere. Very few proc- 
esses, however, show complete vertical integration in 
individual plants, partly because the forces of raw 
materials and markets often pull in opposite direc- 
tions. The initial, weight-losing processing of a raw 
material pulls manufacturing operations toward raw- 
material sources, whereas the later stages involving 
increases in bulk, fragility, and transport costs gen- 
erally cause manufacturing operations to gi'avitate 
toward consumer markets. Such are some of the influ- 
ences operating on the location of industry through the 
economics of integration. These trends may work in 
different directions and degrees in different types of 
industry, and in some cases may offset one another. 

Limitations upon competition in industries with few 
producers generally have the effect of curtailing total 
output and concentrating it at few locations. To the 
extent that combination reduces cross-hauling, it 
strengthens the market as a location factor. The con- 
trol of secret or patented processes may give an estab- 
lished concern such a lead that subsequent competi- 



Industrial Location and National Resources 



tion is difficult, and locational cost differences become 
less significant. Partial or complete monopoly may 
also result from extensive economies of large-scale pro- 
duction in a given field. In either case, the element 
of monopoly control may mean that noneconomic 
forces or the desire to protect existing investment may 
for lengthy periods determine the pattern of location. 

Pricing policies have an indirect but often important 
influence on location. In an imperfect market, caused 
in part by the geographic scatter of sellers, a single 
seller is able to influence the price at which his product 
is sold, particularly if the product is not standardized 
throughout the market. Price control under such cir- 
cumstances influences the geographic distribution of 
producers, notably those of small capacity, as well as 
the distribution of industries purchasing from those 
producers. One important price policy which affects 
the location of producers is the establishment of a 
definite geographic system of delivered prices. Under 
such a system, producers may be able to locate at 
points which would not be economical under a system 
of prices established at the plant. Price policies may 
also affect the location of customer firms to the extent 
that these firms are oriented to the particular material 
to which the policies apply. Naturally, when a blanket 
delivered price is charged for a material, the fabri- 
cator using such material then has no important incen- 
tive to locate near its source. A multiple basing point 
system exerts a decentralizing force on fabricators, 
compared with the centralizing tendency of a single 
basing point system. 

In the formulation of locational policy, it is pertinent 
to consider whether or not changes in the locational 
pattern of manufactures will adversely or favorably 
affect the welfare of small firms. It is a widely held 
belief that the concentration of industrial activity in 
a relatively few areas has greatly aggravated the some- 
times precarious economic position of small firms and, 
therefore, that greater decentralization and diversifica- 
tion of industry in general are desirable. This point 
of view is not corroborated, however, by a study of 
the present geographical distribution of small manu- 
facturing firms. While it is true that small-scale 
operations are characteristic of nonurban, nonindustrial 
areas, because they are designed to tap small pools of 
rural labor and because of a limited supply of mate- 
rials or limited demand, such operations are also 
peculiarly adapted to certain kinds of manufacture in 
the major centers of industrial activity. If the manu- 
facturing process requires relatively more labor than 
machinery or the product must undergo frequent style 
changes or is made for specialized customers, the scale 
of operations must frequently be kept small for maxi- 
mimi efficiency. Such firms can most economically be 



located in larger centers where there is an abundance of 
skilled labor, allied industries, and services. 

The chief difficulties encountered by small firms are 
not locational in character. The stringency of capital 
and credit conditions, "unfair" competition on the part 
of large producers, lack of adequate research facilities, 
and, most recently, the inability to share extensively in 
the armaments program constitute the most imminent 
threats to small producers. These factors could not, 
in any considerable measure, be counteracted by encour- 
aging a shift of industrial activity away from present 
centers. 

Plant location is often influenced to some degree by 
the attractiveness of the community (including con- 
venience of recreational, educational, and community 
facilities) , by the promotional effort of interested local 
business and governmental groups, and by the avail- 
ability of information concerning local resources. 

Policy Considerations 

The primary aim of a private industrialist in locat- 
ing a plant is to select the location which will enable 
him to assemble materials, process them, and deliver 
the product to his customers at minimum cost. Some- 
times the choice is relatively haphazard, but usually 
an effort is made to analyze the relative importance of 
each of the firm's production and distribution require- 
ments and the costs of meeting them at various pos- 
sible locations. The techniques of analysis, however, 
are often faulty and misleading, largely because the 
needed information is unavailable or obtainable only 
through a survey too costly for the majority of firms 
to undertake. 

Government publications already contain consider- 
able information helpful to producers seeking new loca- 
tions. But the Government might well assemble and 
make available to such producers more needed informa- 
tion that cannot be obtained elsewhere. To the extent 
that such service would contribute to the more economic 
and efficient use of plant, labor, and materials, it would 
benefit not only individual enterprises but also the 
Nation at large. 

The Federal Government has never played a neutral 
part in the determination of industry patterns. Most 
governmental measures have some influence on the use 
of resources and the growth of industry. Thus, mini- 
mum wage legislation and the protection of collective 
bargaining have helped to reduce wage-rate differ- 
entials between areas. The establishment of large 
public power projects has created low-cost power areas. 
Protective tariffs have aided certain industries and 
handicapped others. The impact of tax and expendi- 
ture policies has varied widely from region to region. 



8 



National Resources Planning Board 



Such measures, in short, have affected the prices of 
goods and services, raising some and lowering others, 
and thereby increasing or decreasing the attractiveness 
of various possible locations for particular industries. 
But, although the locational potentialities of measures 
of this kind have sometimes been fairly well recognized, 
they have rarely been conceived as parts of a coordi- 
nated locational program designed to promote the most 
efficient utilization of our resources. 

The need for developing such a public progi-am 
is being increasinglj' felt, for, when peace returns, we 
shall be faced with problems of industrial readjust- 
ment and relocation hardly less difficult than those 



involved in mobilization for war. An effective pro- 
gram is likely to call for the employment of varied 
kinds of governmental action consistent with the spirit 
of our democracy and our sj'stem of free enterprise. 
This program will need to take full account of the 
effects of the war upon our economy, of the kind of 
world in which we are likely to find ourselves after the 
war, and of the nature and extent of our industrial 
readjustment problems. If the program is to be a 
useful guide for action, it must be based on careful 
analysis ; it must look to long-term issues and not alone 
to the needs of the early post-war years of transition, 
and reconstruction. 



CHAPTER I. NATURAL RES OURCES — MINERALS 

By Wilbert G. Fritz* 



Volume of Raw Materials 
Derived From Resources 

Economic activity consists in major part of efforts 
to convert resource materials into desired shapes, tex- 
tures, sizes, combinations, and colors ; to transport them 
to desired locations ; to store them for suitable times of 
use; and to provide services, such as handlinn:, selling, 
and repairing, in conjunction with them. Resources, 
therefore, are the starting point for a complicated suc- 
cession of activities involved in industry. The tonnage 
of materials derived fi'om resources is a rough common 
denominator for gauging the influence of those ma 
terials on industrial location, particularly with regard 
to their transfer from one area to another for the 
earlj' stages of utilization. 

The American economy produced in the aggregate 
1 640 million tons of raw materials, or per capita 12.5 
tons in 1939. This total includes products of agricul- 
ture, mining, forestry, and fishing, but it does not in- 
clude such items as earth moved in grading and excava- 
tion, or water consumed or otherwise used (cf. tables 
1, 2, and 3). The materials derived from natural re- 
sources were either consumed, added to the supply of 
goods, used in replacement of goods produced in 
previous years, or exported to foreign countries. 

Agricultural production accounted for 1.2 tons of 
material per capita and of this the major crops, corn, 
cotton, hay, and wheat, constituted slightly less than 
0.4 and dairy products 0.3 tons. Mineral materials 
were produced at a rate of 9.7 tons per cajjita, the 
larger components being coal 3.5 tons per capita, pe- 
troleum 1.5 tons, sand and gravel 1.5 tons, stone 1.1 
tons, iron ore 0.5 ton, and copper ore 0.4 ton — other 
minerals combined amounted to only 1.2 tons. For- 
estry contributed per capita 1.7 tons of materials, more 
than half of which was fuel wood, whereas fishing sup- 
plied only a small fraction of a ton of materials per 
person. In addition, a relatively small tonnage of ma- 
terials, not counted above, was obtained from abroad. 

Locationally Significant Characteristics 
of Natural Resources 

The type, volume, and location of resources are ele- 
ments in the type, volume, and location of economic 
effort both in direct utilization of resources and in the 
more or less detached activities, such as services, that 
require a flow of commodities for their support. Into 

•Principal Economist, National Resources Planning Board. 



utilization enter human, organizational, and techno- 
logical factors that account for the shaping of loca- 
tional patterns in some degree on the basis of re- 
sources. It is therefore instructive to observe the 
characteristics of resources that play a part in location. 
These characteristics may be outlined as follows : 

1. Uneven distribution geographically. 

2. Fixed location. 

3. Bulkiness in relation to value. 

4. Difficult replacement or irreplaceability. 

5. Large ratio of reserves to utilization. 

From a locational standpoint, the striking feature of 
most resources, especially when qualitative factors are 
taken into account, is their geographic concentration. 
Iron ores, for example, are somewhat widely available, 
but only decidedly limited deposits are economically 
profitable to develop. 

The extent to which location of industry is tied to 
resources is determined: (1) by the degree to which 
utilization is directly dependent on the location of the 
resources, and (2) by the influence of non-resource fac- 
tors in the selection of resources not only as to kind 
but also as to extent of use. In numerous instances 
physically suitable resources are not used because of 
remoteness from markets, whereas in other instances 
inferior resources are intensively used because of 
pressing local needs. 

The more advanced the industrialization of society, 
the greater is the probability of difference between the 
locational pattern of industry and the geographic 
spread of resources. Less effort, at least relatively, is 
spent in extractive activity, and more in transporta- 
tion, processing and other handling. 

An idea of the proportion of activity directly con- 
nected with resources can be derived from the distri- 
bution of gainful workers — those who report them- 
selves employed or potentially employable — among in- 
dustry' groups. Data available in the decennial census 
of 1940 indicate that 19 percent of tlic persons in the 
gainfully occupied classification were in agriculture, for- 
estry, and fishing, whereas only 2 percent were in min- 
ing. Most other gainful workers were in the commod- 
ity-producing industries, the raw materials for which 
could be transported away from the location of the 
originating resource, and in certain service industries 
that are collateral to commoditj' production. These 
small percentages for industries located close to resources 



10 



National Resowces Plofnning Board 



Table 1.- 



AVeiglit and value of metallic ores produced in the 
United States, 19J9 



Table 3.— Weight and value of nmimctallio minerals produced in 
the United States, 1939 





Weight 


Value 


Ore 


Short tons 


Percent 
of total 


Dollars 


Percent 
of total 


Total, all ores 


162, 232, 064 


100.00 


$675. 559, 579 


100.00 






Antimony _ -. 


3,174 

420, 337 

4,048 

55,221,000 

19,467,000 

61, 399, 060 

6,387,000 

8,000 

5,325 

32,824 

794, 357 

•708 

32.347 

< 173 

(>) 

32 

38 

4,287 

279,364 

7,576,000 

11,618,000 

67,000 

12,000 


.26 

34.04 

12.00 

37.85 
3.32 

(') 

« 
.02 
.49 

(») 
.02 

« 

(») 

{') 

m 
(') 

.17 

4.67 

7.10 

.04 

.01 


37,200 

2, 166, 230 

46, 892 

1 148, 236, 000 

3 240, 593, 279 

158,511,338 

> 39. 571, 000 


.01 




.32 




.01 




21.94 




3.5. 61 




23.46 


Lead' 


5.86 








5 2, 875, 533 

} 2. 148, 321 

> 1, 936. 714 

22, 157. 000 

> 605, 020 

200 

J 111,004 

3 38,000 

4,402,182 

1,053,660 

'51.070,000 


.42 


Manganese . - 


.32 






.29 


Molybdenum - . . 


3.28 




.09 


Tantalum . 


0) 




.02 


Tin 


.01 




.65 




.16 




7.56 












Zinc-lead-copper 







Source: MineTol yearbook, 1940. 

' Refer also to the production figures for the complex lead, zinc, and copper ores. 
! Less than 0.005 percent. 

3 Value of metal content of ore. Includes metal obtained from all complex ores. 
Value of ore figures not available separately. 
' Metal content of ore. Ore figures not available. 
* Less than one-half short ton. 

Table 2. — Weight and value of nonminerals produced for indus- 
try or direct human consumption. United States, 1939 



Material 



A gricultural materials ' 

Crops- — 

Corn 

Wheat --- 

Oats 

Barley -- 

Rice 

Flaxseed-- 

Other grains .-- 

Cotton lint- 

Cottonseed- 

Tobacco.-- 

Potatoes 

Sweet potatoes 

Dry edible beans and soy- 
beans 

Peanuts 

Sugars and sirups 

Truck crops 

Citrus fruits 

Apples 

Other fruits 

Berries 

Tree nuts -.. 

Other crops 

Livestock and livestock prod, 
ucts ___ 

Cattle and calves 

Hogs 

Sheep and lambs -. 

Chickens- -.- 

Turkeys.- 

Eggs (chicken) 

Dairy products 

Wool 

Other 

Forest products' 

Fuel wood 

Lumber 

Pulpwood 

Fence posts 

Other - 

Fish -- 



Weight 



Short tons 



150,«66,000 



97, 70S, 000 



16, 716, 000 

19,134,000 

2, 3M, 000 

2, 373, 000 

1,021,000 

517,000 

984,000 

2, 954, 000 

4, 500, 000 

929,000 

10, 140, 000 

1, 610, 000 

2, 603, 000 
400.000 

2. 475. 000 
10, 029, 000 
4, 763, 000 
4, 376, 000 
6, 132, 000 
380,000 
114.000 

3, 204, 000 

52, 958. 000 



7, 506. 000 

8, 580, 000 
1, 077, 000 
1, 400, 000 

233,000 

2, 328, 000 

31, 485, 000 

189,000 

160,000 

176, 468, 000 



113.089.000 
32, 968, 000 
9, 834, 000 
9, 005, 000 
11,672,000 
2. 222, OOO 



Percent of 
group 
total 



64.9 



11.1 
12.7 
1.6 
1.6 
0.7 
0.3 
0.0 
2.0 
3.0 
0.6 
6.7 
1.1 

1.7 
0.3 
1.6 
6.7 
3.2 
2.9 
4.1 
0.2 
0.1 
2.1 

35.1 



5.0 
5.7 
0.7 
0.9 
0.2 
1.5 
20.9 
1 
O.I 
100. 



64.1 
18.7 
5.6 
5.1 
6.5 
100.0 



Value 



Dollars 



$8, 855, 344, 000 



3, 574, 669. 000 



338. 503, 000 

440, 709. 000 

45. 762, 000 

39, 842, 000 

33, 022, 000 

26, 950, 000 

17,676,000 

550. 046, 000 

78, 529, 000 

268, 597, 000 

199. 522, 000 

44, 260, 000 

89, 685, OOO 
36, 550, 000 
86,991,000 
534, 045, 000 
133,004,000 
116,703,000 
130. 389, 000 
60,311,000 
20, 673, 000 
283, 000, 000 

5. 280, 676, 000 



1, 301, 226, 000 

979, 940, 000 

182,090,000 

347, 868, 000 

72, 546, 000 

540, 197, 000 

1,723,484,000 

84, 324, 000 

49, 000, 000 

604. 650, 000 



197, 000, 000 
179,825,000 
38, 950, 000 
20. 000, 000 
68. 875, 000 
96, 532. 000 



Percent of 
group 
total 



100.0 



40.4 



3.8 
5.0 
0.5 
0.5 
0.4 
0.3 
0.2 
6.2 
0.9 
3.0 
2.3 
0.5 

1.0 
0.4 
1.0 
6.0 
1.5 
1.3 
1.5 
0.7 
0.2 
3.2 

59.6 



14.7 
11.1 
2.1 
3.9 
0.8 
6.1 
19.6 
0.9 
0.5 
100.0 



39.0 
36.6 
7.7 
4.0 
13.7 
100.0 



» Value data for agricultural materials are based on cash income from farm market- 
ings plus the value of commodities used for human consumption on the farms. Crops 
exclude those fed to livestock and seeds used for reseeding. Livestock and Uvestock 
products exclude draft animals. 

2 Crude materials only. 



Mineral 



All nonmetals 

Arsenious oxide 

Asbestos 

Asphalt, native 

Barite, crude 

Borates, natural 

Bromine 

Calcium-magnesium chloride 

Cement 

Clay, raw 

Coal, bituminous-- 

Coal, anthracite- 

Diatomite-- 

Emery 

Felspar, crude.. 

Fluorspar 

Fuller's earth-- 

Garnet, abrasive 

Graphite - 

Grindstones and pulpstones 

Gypsum, crude. 

Helium 

Iodine 

Kyanite 

Lime-- 

Lithium minerals 

Magnesite, crude --- 

Magnesium oxide and salts 

Marl, calcareous 

Marl, greensand 

Mica, sheet and scrap 

Natural gas 

Natural gasoUne 

Oilstones and related products. - 

Olivine 

Peat 

Petroleum 

Phosphate rock 

Potassium salts 

Pumice 

Pyrites 

Salt (sodium chloride) 

Sand, glass-.- - 

Sand and gravel (building) 

Silica (quartz) 

Slate.- - 

Sodium salts (natural carbonates 

and sulphates)- 

Stone , 

Sulfur , 

Talc, and ground soapstones 

Tripoli - , 

Vermiculite 

Natural sulfonated bitumen 

chats - 

Pebbles for grinding 



Weight 



1, 062, 372, 964 



22, 439 

15, 459 

459, 848 

383, 609 

249, 976 

18, 941 

108, 441 

23, 610, 640 

2 20.371,393 

393, 065, 000 

51, 487, 377 

90,000 

765 

283, 882 

182, 771 

167, 070 

4,056 

!600 

10, 434 

3, 226, 737 
(3) 

'300 
2,960 

4, 254, 348 

1,990 
198, 980 
85, 754 
22,114 
6,466 
25, 079 
(3) 

5, 883, 026 

620 

3,000 

55, 483 

195, 201, 632 

4,207,915 

366, 287 

89, 159 

578, 377 

9,277,911 

2, 468, 290 

192, 350, 243 

34, 959 

631, 380 

262, 222 

147,447,130 

2,501,876 

253, 967 

33, 474 

21, 174 

2, 237, 000 
310, 512 



Percent 

of 

total 



100. 00 



3. 510, 770, 856 



(') 

(') 
.05 
.04 
.02 

(I) 
.01 
2.21 
L92 

37.00 

4.85 

.01 

(') 
.03 
.02 
.02 

(') 

(') 

(') 
.30 

(') 
.40 

(') 
.02 
.01 

(I) 

(') 

0) 

(') 

.56 

(') 

0) 
.01 

18.38 
.40 
.03 
.01 
.05 
.87 
.23 

18. 11 

(') 
.05 

.02 

13.88 

.24 

.22 



0) 
(') 



Value 



Dollars 



495, 500 

512, 788 

3, 066, 844 

2, 344, 103 

5, 882, 302 
7,611,400 
1,307,717 

184,254,932 

2 83, 176, 398 

732, 534, 000 

187, 175, 000 

3 1, 409, 000 

6,828 

1,112,857 

3, 704, 959 
1, 691, 855 

278, 534 
3 56,000 
426, 375 

4, 431, 005 

75. 262 

3 600,000 

69,000 

30, 049, 394 

97,000 

1, 465, 190 

1,907,944 

38, 492 

150, 500 

450, 858 

539, 625, 000 

94, 300, 000 

115,806 

15,000 

362, 066 

1, 265, 000, 000 

12,294,042 

12, 028, 195 

424, 780 

1, 550, 449 
24, 509, 680 

4, 280, 936 

90,943,111 

163, 038 

6, 682, 214 

2, 556, 686 
158,461,515 

35, 500, 000 

2, 700, 834 

466, 380 

174, 587 

314,200 
1, 930, 301 



Percent 

of 

total 



100. 00 



.01 

.01 

.09 

.07 

.17 

.22 

.04 

5.25 

2.37 

20.87 

6.25 

.04 

(>) 

.03 

.11 

.05 

.01 

.01 
.13 



(■) 



(') 

.02 

(') 

.86 

(■) 
.04 
.06 

0) 

(') 

.01 
15.37 
2.69 
(0 
(') 

.01 
36.03 
.35 
.34 
.01 
.06 
.70 
.12 
2.59 
(') 
.19 

.07 
4.51 
LOl 
.08 
.01 
.01 

.01 
.06 



Source: Minerals Yearbook, 19i0: data for estimating the total weight and value 
of clay produced in the United States were obtained from the Structural Clay Pro- 
ducts Institute, the Tile Manufacturers, Association, and the reports of the Bu- 
reau of the Census. The value of clay was estimated by using the average price per 
ton of the raw clay reported in Minerals Yearbook as sold by producers in 1939. 

» Less than 0.005 percent. 

' Estimated. 

> Comparable weights for gases have not been calculated. The quantity of helium 
gas produced in 1939 was 6,281,800 cubic feet; the quantity of natural gas was 2,435- 
000, 000, 000 cubic feet. 

reflect a wide latitude for activities which, because 
of factors to be discussed in other chapters of this 
report, may be attracted to areas away from the re- 
sources. It does not follow, of course, that all such 
activities will be at a distance. On the contrary, re- 
sources are an attractive force that determine location 
unless other factors produce a net advantage for outside 
areas. 

Geographic Elements 

Geographic elements affecting location of industry 
may be classified into: (1) physical features, and (2) 



Industrial Location and National Resources 



11 



resources contributing to or providing mineral and 
nonmineral (lai-gely agricultural) materials. These 
types are not in all instances mutually exclusive. 
Physical features determine in part the availability 
of either minerals or nonminerals for use in industry. 
Rough terrain, for example, may make difficult or pre- 
clude mining operations or it may reduce productivity 
in agriculture. "Weather affects not only the kind and 
volume of agricultural output, but also the cost of 
mining and manufacturing. A rigorous climate may 
be unfavorable to operations that must be out-of-doors, 
that require large building space, or that require special 
protection from the elements. 

Physical Features Affecting Location 

Land contour, atmospheric temperatures, humidity, 
precipitation, waterways, and type of soil have loca- 
tional repercussions. Approximately two-fifths of the 
total land area of continental United States is charac- 
terized by rough mountainous or hilly terrain (fig. 1). 
These areas present obstacles to the location of indus- 
try by acting as barriers to transportation, by forcing 
industry into deep, narrow valleys or out into certain 



accessible flat areas, and by presenting generally un- 
favorable conditions for farming. However, they con- 
tain most of the potential water power, a large part of 
the mineral resources (notably metallic minerals and 
high-rank coal) , and most of the forests. 

Topography 

The Appalachian Mountains have had a substantial 
influence on the locational patterns of industry in the 
eastern half of the United States. They gave certain 
areas the impetus of an early start dating back to 
colonial times when waterways were the chief routes 
of transportation and when overland routes, especially 
in timbered areas, were exceedingly difficult to traverse. 
They also contained waterpower for the initial appli- 
cation of mechanical energy in industry. In the colo- 
nial period, settlement was in a narrow strip of land 
along the Atlantic Coast. The early population pat- 
terns have persisted, although the proportion in urban 
centers has increased. Large cities have developed at 
the main coastal inlets and numerous medium-sized 
cities in other locations, particularly at the fall line 
where waterpower and the terminus of water trans- 



M^ 



PHYSIOGRAPHIC REGIONS. PRINCIPAL WATERWAYS, 
MAJOR CENTERS OF POPULATION 




PHYSIOGRAPHIC REGIONS 
PRINCIPAL WATERWAYS 

9 FT OR MORE DEPTH 

LESS THAN 9 FT DEPTH. 
METROPOLITAN DISTRICTS, 1940 



racPARCD IN orrtcE of the national resources punning karo 



Figure 1 



12 



Xational Resources Planiihtg Board 




MAJOR MANUFACTURING REGIONS OF THE UNITED STATES 



Ur~-^ 



NOTE PERCEhTflGES ShQwn iH EACh aWEfl fl«E BASED OM VALUE ADOEP er 




fSlPARd) IN OIIIC( OF The NuTiDNii RtSOUKCIS PlonNiiii 



Figure 2 



portation encouraged urban settlement. Railroads and 
highways hav^e made possible the development of other 
centers, such as Fitchburg, Mass., York, Pa., and 
Greensboro, N. C, but in the main these transporta- 
tion routes have been focused on existing major centers. 

With some exceptions, notably in eastern Pennsyl- 
vania and the Shenandoah Valley, the land east of the 
Appalachian Mountains is relatively infertile. Rich 
agricultural lands west of the mountains had a de- 
cidedly adverse eflect as soon as railroads and canals 
were built, and immediately to the west the moun- 
tains helped to channel industry into the Erie Canal 
Belt, the shores of Lake Ontario and Lake Erie, and 
the Upper Ohio Valley. From these localized areas 
the region of industrial concentration spreads out be- 
tween the Great Lakes and the Ohio River. 

States north of the Potomac and Ohio Rivers and 
east of the Mississippi River contain only 14 percent 
of the land area of the United States but 50 percent 
of the population (1940) and 75 percent of the value 
added by manufacture (1937). A narrower zone, 
which may be designated as the maiuifacturing belt, 
contains only 9 percent of the country's land area but 
48 percent of the population and 72 jwrcent of the value 
added by manufacture (fig. 2). The periphery of the 
zone touches, on the south and west, points along the 
Potomac, Ohio, and middle Mississippi Rivers, and, on 



the north, large urban centers in southern Wisconsin 
and Michigan, the Erie Canal Belt, Massachusetts, 
southern New Hampshire, and Maine. In contrast, the 
Southern manufacturing zone contains 3 percent of 
the area, 5 percent of the population, and 4 percent 
of the value added by manufacture; the Pacific Coast 
manufacturing zone contains 2 percent of the area, 5 
percent of the population, and 4 percent of the value 
added by manufacture. 

Topography, of course, has not been the sole resource 
determinant of the manufacturing belt. Others will 
be considered later. But it may be noted here that, 
although the manufacturing belt contained 72 percent 
of the manufacturing in 1937, it had only 40 percent of 
the agricultural income, 25 percent of the value of all 
minerals produced (only 20 percent excluding coal), 
and less than 15 percent of the lumber. 

Despite the fact that these percentages for ma- 
terials are lower than the proportion for manufactur- 
ing, they are above average in terms of area. It does 
not follow that the concentration of basic materials- 
must be above that for manufacturing to account pri- 
marily for concentration in manufacturing. Very 
likely a slight superiority of one area in resources may 
lead to a marked superiority in manufacturing. One 
advantage of an area may set in motion an accumula- 
tion of other advantages. The extent to which this- 



Indiistnal Location and National Resources 



13 



may be carried will depend in major degree on the 
advantages of centralized industry, for without such 
advantages there would be no incentive to concentrate 
beyond that of resources. Centralization, of course, 
ma}' be stimulated or retarded by arbitrary means. 

Widely scattered urban centers are characteristic of 
the States bordering along the Mississippi River, al- 
though Chicago resembles the large centers along the 
Atlantic coast in that it is located on a main water 
route that acts as a barrier to land transportion. The 
semiarid Great Plains region has no cities of size except 
Amarillo, Tex., and cities at the eastern edge of the 
Rocky Mountains. The Inter-Mountain region has an 
extremely uneven distribution of industry — marked 
concentration at scattered points — and sparse agricul- 
ture except in irrigated areas. Along the Pacific coast, 
the Atlantic coast type of location with respect to 
physical factors is repeated. 

Waterways 

The influence of waterways on location of industry 
has been considerable. Narrow areas along the Atlantic 
coast and the Great Lakes include a major share of the 
large metropolitan centers of the country even though 
such centers are seldom surrounded by tributary land 
areas on wliich they may draw for regional trade. Most 
other major centers are located on the principal rivers, 
although Indianapolis, Denver, Columbus (Ohio), and 
Atlanta are outstanding examples of cities not on major 
v.-aterways. 

Waterways affect location by acting both as impedi- 
ments and as inducements to commerce. A sizeable 
stream may force land transportation to seek certain 
routes in order to find suitable crossings, if indeed a 
crossing can be found at a reasonable expenditure. 
Once a crossmg has been established, the convergence 
of trade tends to be self-reinforcing and to call for 
further ferries or bridges. St. Louis and ^Memphis 
have been given a strong impetus by this convergence 
of trade routes. The belated settlement of Oklahoma 
seems to have been connected in part with the impedi- 
ment to land transi^ortation presented by the Missis- 
sippi River and flood plain. Settlement was shunted 
north and west of St. Louis or south along the Gulf 
Coast where water transportation could be used. 

Although the streams are less formidable barriers 
now than in earlier years, they have by no means a 
negligible effect in concentrating development in ex- 
isting centers or in new centers that happen to lie 
along certain alternate routes. Physical factors affect- 
ing coastal cities are usually far less amenable to modi- 
fication than those affecting inland cities; neverthe- 
less, changes are possible by the construction of bridges 
or tunnels, as at New York City and San Francisco. 



Mountain Barriers 

The locational effect of mountain barriers is similar 
to that of waterways inasmuch as they help to concen- 
trate development at selected points. The localization 
of industrj' in the mountainous areas is notably associ- 
ated with terrain not only at the urban sites but also 
with respect to transportation routes. Both Denver 
and Atlanta, cited above as examples of cities not 
located on major rivers, are in marked degree the result 
of channeling of trado around mountain barriers. 

In general, mountains offer more impediment to 
location and less inducement than waterways. In fact, 
waterways have exerted and continue to exert a strong 
pull on commerce by providing low-cost routes for 
transportation, and by encouraging freight-rate struc- 
tures favorable to centers along the water routes. Es- 
pecially noteworthy is the bearing of coastal routes, the 
Hudson River, the Erie Canal, the Great Lakes, the 
Ohio River, and the lower Mississippi River on the land 
transportation patterns and the freight-rate structure. 

Water Resources 

Water resources also enter into location of indus- 
try because of needs for agricultural production, non- 
agricultural industry, and domestic (household) con- 
sumption. Supplies ultimately depend on precipita- 
tion, evaporation, and reserves of surface water and 
ground water. Large quantities of water, of course, 
flow on the surface or underground from one area to 
another, and, therefore, interregional aspects are 
brought into play. It is coming to be recognized in- 
creasingly that water supply, far from being a local 
problem, is one that involves interests of competing 
areas. Originally, natural factors of storage, gradient, 
and evaporation determined the places in which and 
the periods of time for which water, derived from 
precipitation at equal or higher levels of altitudes, 
would be available. With the growth of industry and 
population, modifications have been introduced. 
Water is diverted, stored, consumed, and polluted in 
such vast quantities that controls have become neces- 
sary. Public water systems in cities of 20,000 or more 
population delivered in 1936 at least 11 billion tons of 
water, a weight about seven times as large as that of 
all other raw materials produced in the nation. It is 
not uncommon for urban areas to u.se the equivalent 
flow of a sizable river. New York, San Francisco, and 
Los Angeles have had to reach out at great expense 
to distant watersheds. 

Water supply has far greater effects on industry 
than that on agriculture alone through direct use as a 
commodity, use in processing and treating, and appli- 
cation in cooling and humidification. Much of the 



14 



National Resources Planning Board 



water used by industry is not obtained from public 
water systems. If a plant uses large amounts of 
water, it will be located at or near a body of water 
or where abundant supplies are available from wells. 
All large electric power plants, except Diesel plants, 
for example, must be on rivers or fresh-water lakes. 
Thus the options for location are greatly reduced. 
Even where there is a supplj' of water, location of 
plants may be vetoed because of restrictions on use 
for sanitary, recreational, or other reasons, qualitative 
deficiencies of the water, or competitive use by other 
plants. A good example of an abundance of water not 
available at many sites is in Chicago, where virtually 
all the lake front is publicly owned. 

Water supply, therefore, involves a wide range of 
aspects, but behind all considerations is the limitation 
on supply fixed by the precipitation (see fig. 3). Ele- 
ments of control for better use include improvement 
of ground cover, soil conservation, and regulation of 
stream flow. Irrigation projects, flood pi'evention, hy- 
droelectric power generation, and navigation substan- 
tially affect the location of industry. Water supply 
is generally a small cost item for enterprise, but gi- 
gantic social costs are being incurred to accommodate 
water resources to needs. 



Temperature 

Temperature as a factor in location of industry 
sometimes plays a dominant role, although its influence 
outside the field of agriculture is usually limited. The 
citrus-fruit industry and numerous activities in con- 
nection with it must necessarily be in the southern re- 
gions — almost entirely in California, southern Texas, 
and Florida — where freezing temperatures are rare or 
nonexistent (cf, fig. 4). Cotton production is limited 
to southern areas that have about 200 or more days 
average frost-free season. On the other hand, the cool 
climate of the northern States is favorable to produc- 
tion of hay and dairy products. Creameries, cheese 
factories, and condensed and evaporated milk plants 
are located close to the source of supply. Almost two- 
thirds of the cheese manufacture is in Wisconsin and 
New York. The industry, however, has been spreading 
to other States which have increased their share from 
about one-fourth in 1930 to approximately one-third, 
gains having been especially rapid in the cotton belt. 
Butter production and condensing of milk are concen- 
trated in the northern grass-land areas but less so than 
cheese production. The development of early maturing 
corn has extended corn production into INIinnesota and 
other northern States. 




U = "PPARTMENT OF AGRICULTURE 



NEG. 233 A BUREAU 'OFAGRICULTURAL ECONOMICS 



Figure 3 



IndAistrial Location wnd NaUotwl Resources 



15 




I I Under 10 
11! 10-19 
20-29 
30-d9 



40-49 

Sga 50-59 

60-69 



U, S. DEPARTMENT OF AGRICULTURE 



NEG. 18934 BUREAU OF AGRICULTURAL ECONOMICS 



Figure 4 




U.S. DEPARTMENT OF AGRICULTURE 



Figure 5 



NEG 18935 BUREAU OF AGRICULTURAL ECONOMICS 



16 



National Resources Planning Board 



Certain outdoor production, e. g., shijibuilding, can 
be carried on more favorably if winters are not rigor- 
ous. Likewise, activities such as aircraft assembly, 
requiring large building space, may best be located in 
areas of temperate climate. On tiie other hand, high 
atmospheric temperatures, especially if combined with 
high humidity, are likely to slow down production or 
to require expenditures for protection from the heat 
(cf. fig. 5). One reason often cited for the location of 
the textile industry in New England is the existence of 
a cool, moist climate which makes the yarn more 
pliable and less likely to break. Excessive heat is often 
a problem in steel mills and machine shops. 

It should be noted that high summer temperatures 
are not limited to southern States. Northern States, 
especially those in the Great Plains area and the 
basin areas of the Rocky Mountains, may have high 
temperatures, although the season of hot weather is 
short. Areas with wide annual extremes of heat and 
cold may be unfavorable to location of industries. No 
doubt the even climate of the Los Angeles area makes it 
attractive for the motion picture industry. 

The locational significance of temperature is being 
lessened by the introduction of air-conditioning. Year- 
around temperature control may be combined with air 
purification, humidity control, and artificial lighting 
arrangements, so that the costs of installation and 
operation can be distributed among multiple benefits. 
Windowless plants incorporating these features permit 
greater freedom in location. 

Land Resources 

Land resources are a factor in location, because they 
have direct effects as well as because they are a source 
of minerals and a base element in agricultural pro- 
duction. The exact selection of a site may be deter- 
mined by subsurface features, e. g., the strength of the 
strata for supporting the weight of buildings and 
equipment or for preventing vibration of machinery. 
This factor ma}' cause a plant to be located on an- 
other site possibly in another area. Hydroelectric 
plant locations are in many instances governed by the 
extent to which the underlying strata are capable of 
supporting the dam structure under the high pressure 
of the water held back. In less specialized cases sub- 
surface features are usually a less critical consideration 
in location. In fact, engineering techniques make pos- 
sible the support of skyscrapers on floating founda- 
tions sunk into comparatively loose subsurface material. 

Land-space considerations are almost always signifi- 
cant in the location of plants both within and among 
urban areas as well as in the weighing of the merits 
of urban as against rural sites. Competition for land 
areas is a universal factor that must be faced in the 
selection of a plant location and in the distribution of 



supporting population. Land-investment economies of 
dispersion must be compared with the advantages 
of location where competition for land space is stiff, 
but where there may be access to desired facili- 
ities. The land-space problem is made more difficult 
by the inability of most urban areas to spread out with 
ease in all directions. As a rule the most congested 
district in an urban area is off center, owing to the 
influence of waterways, terrain, or the layout of trans- 
portation. Competition for locations is more focalized 
than it would be with alternative locations in more 
directions. The most extreme case of focalization is 
found on Manhattan Island, but San Francisco, Seattle, 
Galveston, New Orleans, Charleston (S. C), and 
Norfolk have similar problems. 

Mineral Resources 

For the purpose of investigating industrial location, 
natural resources may be divided into metallic min- 
erals ; nonmetallic minerals, including coal, petroleum, 
and natural gas; agricultural resources; forests; and 
marine life. Mineral resources, which comprise the 
first two classes, are almost wholly extractive in char- 
acter. These sources cannot be replenished at a sufficient 
rate to be of consequence in the calculations of supply. 
From a practical standpoint, the resources will be 
depleted with each increment of use or waste. 

Nonmineral resources, unlike mineral resources, are 
connected with industry through the production of liv- 
ing matter for use as materials. The use may be direct, 
as in the case of many fruits and vegetables, or it may 
be indirect, as in the case of most woods, fibers, and 
vegetable oils. These nonmineral resources are replen- 
ishable at variable rates. Replenishment of cultivated 
crops may proceed rapidly, whereas replenishment of 
forests and animals which require a long period for 
the life cycle will consume a longer interval. To the 
extent that plant and animal tissues are derived from 
water and elements in the atmosphere, no problem of 
long-term depletion exists. The tissues, however, con- 
tain valuable minerals from the soil, minerals that may 
have to be replaced for continued production. A chief 
difference between agriculture and mining is that min- 
eral matter for plants need not be highly concentrated ; 
in fact an overconcentration of certain minerals, such 
as phosphorus, would be fatal to growth. On the other 
hand, the problem of utilization of minerals is in large 
part one of concentration. The reason why Lake Su- 
perior district iron ores are used, for example, in pref- 
erence to the more abundant ores of the Appalachian 
region is that they are more concentrated. Areas lack- 
ing concentrated mineials must be largely agricultural 
or dependent on importation of mineral supplies for 
the support of industrial activity. 



* Industrial Location and National Resources 



17 



/^, 5--- TOTAL VALUE OF PRODUCTION OF COAL, PETROLEUM AND NATURAL GAS, 
^i ^--^ AND NON-FUEL MINERALS, BY STATES, 1939 




NON-FUEL 
MINERALS- 



PETROLEUM AND 
NATURAL GAS 



PREPARED IN OfflCE OF THE NATIONAL RESOURCES PLANNING BOARD 



FiGUEE 6 



It should not be assumed, of- course, that the cur- 
rently known supplies or the present methods of utili- 
zation set an absolute limit on the quantitj' of mineral 
resources available for industry. Each year discov- 
eries add to known reserves. Particularly noteworthy 
are the additions to known reserves of petroleum, gas. 
and rare metals. On the other hand, few discoveries 
of importance have been made in recent years of coal, 
iron ore, cojjper, zinc, and lead. One may observe that 
the more accessible minerals are likely already to have 
been found and that future discoveries may yield 
smaller returns in terms of consumption standards. 
There are also possibilities of intensive expansion 
through the development of processes for utilization of 
lower-grade minerals. Inventions, such as the cyanide 
process used in gold mining and the byproduct process 
for coke production, have increased the range of re- 
sources that are commercially workable. A similar 
result is the reduction of minerals discarded as waste. 
Large quantities of coal, copper, zinc, lead, and other 
minerals are now being recovered that in earlier years 
would have been cast aside. 



Qualitative variability of mineral resources, therefore, 
is a significant aspect of their relationship to location 
of industry. The study of mineral resources as fac- 
tors in location should go beyond the existing patterns 
of use. It should indicate possibilities latent within 
modifications of the patterns as well as weigh the 
merits of the present adjustments to environment. The 
extraction of minerals is considerably more concen- 
trated than the resources from which supplies are 
drawn. This is especially true of certain minerals, 
such as coal, stone, sand, and gravel, which are widely 
dispersed. Because of geographic variability of in- 
dustry differing from that of mineral resources, or for 
other reasons, the rate of exploitation is not uniform. 
Given a large expanse of mineral resources, an enter- 
pi'iser has the choice of using supplies at one location 
or another. In other words, a question of selection 
arises to change the locational pattern from that of 
the resources in addition to the modifications dictated 
by nonresource considerations. 

Shifts of industry, which reflect in part readjust- 
ments to resources, are not now so obvious as they 



18 



National Resources Planning Board 



Table 4. — Mineral products of the Vnited States and principal 
producing States (and Alunka) in order of quantity produced, 
1939 



Table 4. — Mineral products of the Vnited States and pritwipal 
producing States (and Alaska) in order of quantity produced, 
7939— Continued 



Mineral product 



Aluminum 

Andalusite 

Antimonial lead- 
Antimony ore 

ApliTe 

Arsenious oxide.. 
Asbestos.- 



Asphalt, native... 

Asphalt, oil 

Barite, crude 



Bauxite .- 

Bismuth - - 

Bitumen, natural sulfonated.. 

Boron minerals .- 

Bromine 



Cadmium 

Calcite (Iceland spar) 

Calcium-magnesium chloride. 
Cement 



Chats 

Chromite 

Clay products. 
Clay, raw. 



Coal, bituminous 

Coal, Pennsylvania anthracite. 
Coke 



Copper.- 

Diatomite 

Dumortierite — 

Emery - 

Feldspar, crude. 



Ferroalloys... -. 

Flintlining for tube mills. 
Fluorspar 



Fuller's earth 

Garnet, abrasive. 



Gold.*- 



Amorphous graphite 

Crystalline graphite 

Grindstones and pulpstones 
Gypsum, crude 



Helium 

Iodine, natural. 
Iron ore 



Pig iron 

Sinter iron. 
Kyanite 



Lead. 
Lime. 



Lithium minerals 

Magnesite, crude 

Magnesium 

Magnei-ium salts, natural . 
Manganese ore 



Manganiferous ore. 



Manganiferous zinc residium. 
Calcareous marl 



Greensand marl. 
Mercury 



Mica, scrap.. 
Mica, sheet.. 



Mineral paints (zinc and lead 
pigments) . 



States and their percentage of United States 
total production 



New York.' Tennessee,' North Carolina.' 

California,' Nevada.' 

Not separable by states. 

Idaho (84.3), Alaska,' California,' Nevada (4.3). 

Virginia.' 

Montana,' Utah.' 

Vermont,' Arizona (5.8), Georgia and North 
Carolina,' Maryland.' 

Texas (30.2), Kentucky,' Oklahoma,' Alabama.' 

Not separable by States. 

Missouri (44.7), Georgia (22.6), Tennessee (14.9), 
California.' 

Arkansas (96.3), Alabama,' Georgia.' 

Not separable by States. 

Utah.' 

California (99.9), Nevada (0.1). 

North Carolina,' Michigan (34.4), California,' 
West Virginia (2.3). 

Not separable by States. 

New Mexico.' 

Michigan (90.7), West Virginia (11.1), Ohio.' 

Pennsvlvania (20.3), California, (9.1), Michigan 
(6.7)", New York (5.6). 

Oklahoma (74.3), Missouri (23.4), Kansas (2.2). 

California (97.2), Oregon (2.8). 

Ohio,' Pennsylvania,' California," Illinois.' 

Pennsvlvania (17.7), Georgia (14.2), Ohio (12.5), 
Missouri (10.2). 

West Virginia (27.5), Pennsylvania (23.5), Illinois 
(11.8), Kentucky (10.9). 

Pennsvlvania (KW.O). 

Pennsylvania (27.3), Ohio (13.81, Indiana (11.0), 
New York (10.1). 

.\rizona (36.8), Utah (24.1), Montana (13.7), Nevada 
(9.3). 

California,' Oregon,' \\'ashington,' Nevada.' 

Nevada.' 

-New York (100.0). 

North Carolina (30.3), South Dakota (19.1), New 
Hampshire (13.6), Colorado (11.8). 

Pennsylvania (34.2), New York (19.5), Ohio (17.1), 
West Virginia.' 

Minnesota.' 

Kentucky (49.0), Illinois (41.2), Colorado (4.1), 
New Mexico.' 

Georgia,' Texas (22.9), Florida,' Illinois.' 

New York,' North Carolina,' New Hampshire,' 
Vermont.' 

California (25.0), Alaska (12,1), South Dakota 
(11.0), Colorado (6.5). 

Nevada,' Georgia.' 

New York.' 

Ohio (72.1), West Virginia (25.9), Washington.' 

New York (22.0), Michigan (19.9), Iowa (13.3), 
Texas (8.8). 

Texas (100.0). 

California.' 

Minnesota (59.0), Michigan (20.5), Alabama (10.9)' 
Pennsylvania.' 

Pennsylvania (28.0), Ohio (22.6), Indiana (10.5), 
Illinois (8.9). 

Tennessee.' 

California,' Georgia,' Virginia,' North Caro- 
lina.' 

Missouri (37.1), Idaho (21.6), Utah (16.1), Okla- 
homa (".''). 

Ohio (26.0), Pennsylvania (16.3), Missouri (12.2), 
West Virginia (5.9). 

South Dakota (87.4), California.' 

Washington,' California,' Nevada,' Vermont.' 

Michigan (100.0). 

Michigan.' Nevada,' California,' Washington.' 

Montana (38.0), Tennessee (26.7), Arkansas (18.3), 
Georgia (9.0). 

Minnesota (91.9), New Mexico (4.5), Colorado (1.1) 
Georgia (1.0). 

New Jersey.' 

West Virginia,' Virginia (40.1), Nevada,' Minne- 
sota (3.6). 

New Jersey (100.0). 

California (69.7), Oregon (24.6). Idaho,' Nevada 
(4.4). 

North Carolina (50.4), Georgia,' Virginia,' Cali- 
fornia.' 

North Carolina (49.3), Connecticut,' South Da- 
kota,' New Hampshire (5 A). 

Pennsylvania,' Illinois,' Kansas,' Indiana.' 



Mineral product 



Molybdenum 

Natural gas.. 

Natural gasoline 

Nickel 

Oilstones, etc 

Olivine 

Ores, crude: 

(Copper 

Dry and siliceous (gold and 
silver). 
Lead - 

Lead-copper.-- 

Zinc 

Zinc-copper 

Zinc-lead — 

Zino-lead-coppcr 

Peat 

Pebbles for grinding 

Petroleum 

Phosphate rock 

Platinum metals 

Potassium salts 

Pumice 

Pvrites 

Salt - 

Sand and gravel 

Sand-lime brick 

Selenium 

Silica (quartz) 

Silica sand and sandstone, 

ground. 
Silver 

Slate' - 

Sodium salts (other than NaCl 

natural). 
Stone 

Sulfur 

Sulfuric acid from copper and 
zinc smelters and roasters 
and from roasting of high- 
sulflde gold and silver con- 
centrates. 

Sulfur ore. 

Talc, pyrophyllite, and ground 
soapstone.3 

Tantalum ore - 

Tellurium - 

Tin.- 

Titanium ore : Hmenite _ 

Titanium ore: Rutile 

Tripoli 

Tungsten ore 

Uranium and vanadium ores. . . 
Vermiculite 

Zinc.-- 



States and their percentage of United States 
total production ^ 



Colorado (78.5), Utah (15.3), New Mexico (3.9), 

Arizona (2.2). 
Texas (39.5), California (14.1), Louisiana (11.9), 

Oklahoma (10.1). 
Texas (35.5), California (28.0), Oklahoma (20.1), 

Louisiana (4-3). 
Not separable by States. 
Ohio,' Arkansas,' New Hampshire,' Indiana.' 
North Carolina (100.0). 

Utah (35.5), Arizona (31.0), Nevada (8.9), Michigan 

(8..3). 
California (26.8), Alaska (24.4), Nevada (9.9), South 

Dakota (8.4). 
Missouri (95.2), Idaho (2.3), Utah (1.4), Montana 

(0.4). 
Utah (61.9), Colorado (18.3), New Mexico (13.8), 

Nevada (2.7). 
Oklahoma (45.7), Kansas (25.6),lTennessee (14.1), 

New Jersey (8.0). 
Arizona (100.0). 

Oklahoma (46.3), Kansas (15.3), Idaho (10.4), Vir- 
ginia (5.6). 
Utah.i 
NewSYork (33.0), New Jersey (21.2), Michigan 

(11.2), California (7.6). 
California.' Minnesota.' 
Texas (38.2), California (17.7), Oklahoma (12.6), 

niinois (7.5). 
Florida (71.3), Tennessee,' Idaho (2.5), Montana 

(1.2). 
Alaska (73.1), California (2.8), Oregon (0.05). 
New Mexico.' California.' Utah.' Maryland.' 
Kansas (46.7), California (40.6), Nebraska,' New 

Mexico.' 
Tennessee,' Virginia,' New York (13.8), California.' 
Michigan (26.0), New York (22.0), Ohio (19.3), 

Louisiana (11.6). 
New York,' California (6.0), Washington (5.3), 

Michigan (4.8). 
New York,' New Jersey,' Michigan (14.1), Min- 
nesota.' 
Not separable by States. 

Wisconsin,' California.' North Carolina,' Ohio.' 
Illinois (29.5), New Jersey (28.6), Ohio (11.9), 

Pennsylvania.' 
Idaho (26.4), Utah (16.5), Montana (14.0), Colorado 

(13.0). 
Pennsylvania (45.7), Vermont (29.2), Vuginia,' 

New York (7.0). 
California (79.9), Texas,' Wyoming,' Utah.' 

Pennsvlvania (10.7), Michigan (7.6), Ohio (7.6), 

New York (7.3). 
Texas (79.9), Louisiana (20.0), California,' Utah.' 
Pennsylvania (32.7), Illinois (22.9), Tennessee,' 

Arizona.' 



Nevada (.54.4). Colorado (45.6). 

New York (.39.3), Vermont (15.5), North Carolina 
(14.5), California (13.3). 

New Mexico,' South Dakota,' Wyoming.' 

Not separable by States. 

Alaska (97.4), South Dakota (1.6), Montana,' New 
Mexico.' 

Virginia.' California.' 

Virginia.' Arkansas.' 

Missouri,' Illinois (33.3), Oklahoma,' Arkansas.' 

Nevada (48.8), California (29.5), Colorado (11.2), 
Idaho (5.3). 

Arizona,' Colorado (30.5), Utah (0.8). 

Montana,' Colorado,' North Carolina (6.6), Wyo- 
ming.' 

Oklahoma (28.6), New Jersey (18.1), Kansas (14.0), 
Idaho (9.7). 



' Production figures not given separately. 
' According to value. 

' Exclusive of soapstone used as dimension stone (all in Virginia), which is there- 
fore classified as "stone." 

Source: Minerah Yearbook, Berieir of 191,0. Rank of States in metal production 
(except aluminum, ferro-alloys, and pig iron) arranged according to mine reporrs, not 
smelter out out. 



Ind/ustrial Location amd NaUonal Resources 



19 



Table 5 — Bistrilniion of the valve of mincrah ly States: All minerals ccmlived and 4 prindfol minerals in order of value in each 

State, 1939 



State ■ 



Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware --- 

District of Columbia- 
Florida 

Georgia.- 

Idabo -- 

Illinois 

Indiana 

Iowa.- -. 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland .-- 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana.. 

Nebraska 

Nevada. 

New Hampshire. - 

New Jersey 

New' Mexico 

New York 

North Carolina... 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina... 

South Dakota 

Tennessee 

Texas . 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 



All minerals First ranking mineral in State Second ranking mineral in State Third ranking mineral in State Fourth ranking mineral in State 



1,23 

.61 

1.77 

.70 

11.04 

1.51 

.10 

.01 

.01 

.31 

.3.5 

.78 

4.97 

1.2B 

.60 

2.91 

2.67 

3.99 

.09 

.28 

.19 

2.74 

2.51 

.12 

1.08 

1.60 

.10 

.82 

.03 

.71 

1.65 

1.85 

.44 

.06 

2.83 

5.58 

.20 

12.57 

.02 

.13 

.59 

.95 

16.57 

1.89 

.16 

1.03 

.75 

6. .51 

.30 

.93 



Name of mineral 



Coal 

Hold 

Copper 

Petroleum... 

- do... 

Molybdenum 

Stone 

Clav products 

...do.. 

Phosphate rock . . . 

Stone -. 

Silver 

Petroleum 

Coal 

Cement... 

Petroleum.. 

Coal 

Petroleum. 

Stone -- 

Coal 

Stone. 

Iron ore 

do... 

Natural gas 

Lead 

Copper 

Cement 

Copper 

Stone 

Zinc 

Petroleum... 

Natural gas 

Stone.. 

Coal... 

do.. 

Petroleum 

Gold 

Coal 

Stone 

fio 

Odd 

Coal... 

Petroleum 

Copper 

Stone 

Coal 

Cement 

Coal.. 

Stone.. , 

Petroleum 



22 






3 
12.1 
36.8 

1.3 

17.7 

(') 

1.3 

.2 

rn 

64.2 
3.1 

26.4 
7.8 
2.7 
4.2 
4.9 
8.1 



.8 


.3 


2.8 


23.4 


61.3 


.6 


37.1 


13.7 


f!) 


9.3 


.3 


22.5 


2.4 


2.8 


4.4 


.3 


3.5 


12.8 


1.7 


41.1 


.4 


1.1 


11.0 


1.1 


37.0 


24.1 


2.2 


2.7 


(') 


20.8 


2.2 


1.4 



53.2 
92.3 
72.6 
56.9 
49.0 
P) 
48.2 
46.3 
(=) 
60.4 
33.1 
35.3 
48.1 
46.1 
30.5 
51.1 
65.8 
68.0 
32.6 
25.3 
54.5 
31.9 
91.2 
63.6 
.32.2 
32.1 
P) 
40.0 
36.8 
38.0 
44.1 
19.4 
37.7 
90.2 
26.9 
70.4 
37.8 
70.7 
57.0 
32.0 
87.3 
25.9 
68.1 
44.6 
48.9 
66.5 
P) 
68.9 
28.1 
46.0 



Name of mineral 



Iron ore ■ 

Platinum metals — 

Gold.. 

Coal 

Natural gas 

Coal.. 

Clay products 

Stone 

.. .do 

Cement... 

Raw clay 

Lead 

Coal.. 

Cement 

Coal 

Natural gas 

...do 

...do... 

Sand and gravel — 

do 

do 

Petroleum 

Stone... 

Sand and gravel 

Cement 

Gold 

Sand and gravel — 

Gold 

Clay products 

do 

Copper 

Petroleum 

Clay products 

Sand and gravel — 
Clay iToducts. 
Natural gas. 
Stone. 
Petroleum. 
Sand and gravel. 
Clay products. 
Stone, 
do. 

Natural gas 

Gold. 

Slate. 

Store.- - 

Sand and gravel. 

Natural gas. 

Iron ore. 

Coal. 



S.S 






6.3 
63.7 

6.6 

.4 

17.1 

1.6 

1.0 

(>) 

(>) 

m 

27.1 
21.6 
8.3 
(') 

.8 

5.5 

3.9 

10. 1 

.9 
2.8 
1.7 
1.6 
1.6 

.8 

40.3 

4.7 

.9 
6.4 

.3 
5.6 
6.5 

.8 
3.8 

.1 

21.7 

5.3 

1.1 

2.8 

.3 
1.3 

.6 
.5.2 
26.5 
4.9 
29.2 
3.7 
5.9 
11.8 
2.2 
1.2 



19.1 
3.9 
14.8 
12.2 
19.6 
22.7 
29.2 

m 
(=) 
p) 

28.4 
25.8 
36.2 

29.4 
23.8 
18.2 
31.9 
23.6 
23.9 
21.0 
18.4 

2.2 
16.6 
16.3 
14.6 
20.0 
36. 5 
27.1 
22.2 
13.7 
13.6 
24.8 

4.8 
22.2 
11.9 
19.5 

6.8 
27.1 
59.0 

4.0 
20.7 
20.2 
12.1 
27.9 
13. 6 
19.1 
?2.9 
27.8 
27.3 



Name of mineral 



Cement 

Coal.. 

Silver. 

Bauxite 

Gold 

. -do 

Sand and gravel, 
-...do.. 



Stone 

Clay products 

Zinc 

Stone 

...do 

...do 

Zinc 

Petroleum 

Sulfur 

Cement 

...do.. 

Lime 

Cement 

Sand and gravel.. 

Clav products 

Coal . 

Natural gas 

Stone- - 

Silver 

Sand and gravel.- 

- do 

Natural gas 

Stone 

Bromine- 

Clay products. . . . 

Natural gas 

Natural gasoline - 

Cement 

Natural gas 

Clay products 

Raw olay 

Cement 

do. 
Sulfur.. 
Silver. 
Lime.. 
Clay products.. 
Coal 

Petroleum. 
Sand and gravel.. 
Natural gas. 



S- 

cc E 

•c-o 



D b£ 



3.6 

.1 

12.0 

95.8 

25.6 

6.5 

.8 

.1 

(?) 

.9 

1.9 

9.7 

4.9 

4.7 

2.8 

14.0 

.5 

P) 

P) 

P) 

3.3 

5.9 

1.9 

.6 

.7 

1.2 

.4 

6.6 

.2 

3.3 

1.6 

6.4 

P) 

P) 

3.6 

17.2 

P) 

6.6 

P) 

8.5 

P) 

3.0 

80.3 

16.5 

1.5 

2.3 

.6 

.5 

..2.6 

.9 



12.8 
2.3 

7.1 

7.0 
10.7 
20.0 
18.0 
15.3 
P) 
11.2 
16.2 
14.9 

3.7 
14.0 
17.2 

5.8 

5.2 

P) 

P) 

P) 
12.3 

9.4 

1.8 
14.7 
13.4 
10.2 
15.0 

8.2 
18.4 
11.1 
12.6 
12.9 

P) 

P) 
15.7 

6.6 

P) 

6.6 

P) 
24.0 

P) 
14.0 

4.1 

9.1 

6.5 

6.5 
16.6 

2.2 
20.6 
12.4 



Name of mineral 



Stone 

Silver 

Lead 

Natural gas 

Natural gasoline. 

Silver 

Lime 

Raw clay 



Sand and gravel 

Cement 

Gold 

Cement 

Clay products... 

do.. 

Cement 

Stone 

Natural gasoline 

Clay products 

do... 

do... 

Copper 

Manganiferous ore 

Raw clay 

Stone 

Silver 

Clay products 

Timgstenore 

Feldspar 

Stone 

Potassium salts... 

Cement 

Sand and gravel .. 

Natural gas 

Stone 

Zinc 

Sand and gravel... 

Cement 

Lime 
Gold 

Sand and gravel 

Phosphate rock 

Natural gasoline. 

Coal 

AslJestos 

Cement 

Gold 

Stone 

CemeJit 

Natural gasoline 



^aa 



1.6 

.3 

2.6 

.4 

39.4 

13.0 

P) 

P) 

P) 
.8 

P) 
2.1 
3.8 
4.6 
3.0 
3.0 
2.8 
3.7 
.3 
1.4 
.7 
6.2 
P) 
P) 
2.9 

14.0 
.5 
P) 

14.6 
1.9 
P) 
5.4 
1.0 
P) 
6.4 

28.6 
1.2 

18.6 
P) 
.2 
.7 
P) 

28.7 
.8 
P) 
P) 
1.6 
2.8 
P) 
1.7 






4.8 
.5 
1.3 
6.8 
7.6 
9.0 

P) 

P) 

P) 
6.0 

12.3 
3.4 

10.5 

14. S 
4.5 
4.0 
2.0 
9.9 

14.4 

10.6 
7.9 

P) 

P) 

10.1 
9.7 

13.0 

P) 

13.6 

10.0 

P) 

12.6 
S.4 
1.1 
8.5 
6.2 

14.3 
6.4 

P) 
8.9 
2.9 

P) 
3.7 
8.9 

P) 

P) 

10.0 
1.6 

P) 
4.0 



' Includes Alaska and District of Columbia. 
Source: Minerals Yearbook, Review of I9i0. 



> Value not given separately. 



' Data not available. 



' Less than 0.05 percent. 



were when vast resources of land in the western sections 
of the country were undeveloped. Virtually complete 
occupation of land from coast to coast, smaller differ- 
ences in intensity of demands on resources among geo- 
graphic divisions, and maturation of the economy in 
other respects, dictate a more selective, although not 
necessarily an optimum, use of resources. The reloca- 
tion will result partly from decisions in enterprise 
based on judgments formed from available information 
on factors affecting location and partly from govern- 
mental policy toward land use. pricing, tariffs, com- 
merce, conservation, and the like. Investigation of 
the bearing of resources on location may be expected to 
aid both enterprise and government in making desirable 
adjustments. 



American industry consumes a multiplicity of min- 
erals obtained from widespread locations (see tables 
4 and 5 and figs. 6-19). The Bureau of Mines reports 
data on 91 varieties that are used and some minerals 
are not covered. It would seem that the complexity of 
mineral resources is too great to enable the drawing of 
conclusions on locational effects. This would be true if 
all or most of them exerted a strong pull on industry. 
Actually the geographic drawing power of most of the 
minerals is relatively minor owing to the small quan- 
tities used, high unit values, and necessity of using the 
minerals in combination with other materials. 
Chief Mineral Resources 

Eight mineral materials — petroleum, coal, natural 
gas, cenuMit, iron ore, stone, sand and gravel, and cop- 



20 



National Resources Planning Board 




ISQUBCE BaSEO OH P6Ta FROM MIMEBflLS YEflBBOQK .1938 6 1939 



fO,000 SHORT T^^\S 



fStP*R[D IN OFIICE Of THE ll«TIPN«i BESOURCfS PLANNING 



Figure 7 




.000,000 BflRREuS 



PHEPMEO IN oil 



ICE 01 IHt N»liOii«l HtSOUKli Planning B0«S0 



Figure 8 



iTtdustnal Location and National Resources 



21 



per — accounted for 84 percent of the value of all min- 
eral materials produced in 1939 and for 93 percent of 
the total weight (of. figs. 20 and 21). Of these eight, 
coal and iron ore have had the greatest locational influ- 
ence for reasons that will become aj^parent when further 
facts are considered. Probably the existence of an 
abundance of cheap coal and iron ore in the Western 
Mountain States would have been sufficient to alter 
markedly the distribution of industry in the Nation de- 
spite the limitations of agricultural resources in those 
States. 

Certain of the mineral resources have such general 
application that they stand apart from those of special 
use in the determination of location. Mineral resources 
cf general use are the fuels, iron ore, copper, lead, zinc, 
aluminum, limestone, and salt. 

Mineral fuels have the most general applicability of 
all resources, for there is hardly a phase of economic 
activity they do not affect. Application of inanimate 
energ}' is the key to high productivity in nearly all 
branches of industry. In addition to the mineral fuels, 
water power and wood fuel are sources of energy, but 
i-elatively minor ones. Of the annual energy supply 
from ground sources, coal contributes 51 percent, petro- 
leum 34 percent, natural gas 11 percent, and water 
power about 4 percent ; wood fuel contributes probably 
less than water power in relation to these sources. 

In terms of value at or near the soui'ce of supply 
(cf. table 6), mineral fuels are slightly more than 
four times as important as all metallic ores produced, 
including iron ore. copper, gold, silver, lead, zinc, 
and aluminum.^ They are about four and one-half 
times as important in terms of weight. The value of 
mineral fuels is four and one-half times that of other 
nonmetallic minerals and their weight is one and three- 
fourths times as great. 

Among the eight chief minerals that account for 
93 percent of the weight of all minerals, petroleum, 
cement, stone, sand and gravel, and copper are 
either Midely available or are not pai'ticularly prev- 
alent in the northeastern belt, which has 72 percent of 
the total manufacturing of the country. These five 
minerals, therefore, could not by themselves explain 
the marked concentration of manufacturing. Likewise 
the resources that provide the remaining 7 percent of 
the weight of minerals could hardly have a controlling 
influence. This is not to deny that minor minerals in- 
dividually may have a strcmg influence on the location 
of segments of industry. Indeed, a limited amount of 
processing nearly always takes place at or near the 
point of production, but the volume of employment 



Table 6. — Value of minerals produced by Stales and proportion 
for coal, petroleum and natural gas, and for nonfuel minerals, 
1939 





Value of 
all minerals 
(000 dollars) 


Percent of State total value 


state 


Coal 


Petroleum 

and natural 

gas 


Nonfuel 
minerals 


Alabama. 

Arizona ... . 


52. 124 

75.057 

29,507 

467,612 

64,072 

4,306 

401 

592 

13.060 

14. 633 

33. 139 

210, 296 

53.423 

25,484 

123. 392 

113,243 

168,903 

3,770 

11.838 

8,180 

115,970 

106, 428 

5,192 

45,619 

63,355 

4,390 

34.671 

1,187 

30,271 

69,922 

78,384 

18,534 

2,690 

119,751 

236, 177 

8,636 

532,356 

981 

5,423 

24,811 

40,120 

701,940 

80,222 

6,972 

43,583 

31,590 

275,563 

12,705 

39,425 


54 
0) 

13 


23 





(') 

<''36 

47 

29 

4 

65 





25 



1 





13 

6 









5 





90 

27 

1 

m 

71 



28 

(') 

9 



57 

17 

69 



27 






67 

76 

3 













49 

4 



76 

24 

92 







25 



65 

1 

19 

'I 





59 

34 



1 

19 

89 



13 





(') 

'■'92 

1 



(') 

(>) 

26 



62 


46 

3 100 




20 


California 


24 


Colorado 

Connecticut 


74 
100 




100 


District, nf nnliimhin 


100 


riori'ia 


100 


Georgia 

Idaho 


MOO 
1 100 


Illinois 


15 


Tndinnft 


49 




71 


Kansas 


20 


Kentucljy 


11 
8 


Maine 


100 




75 


Massachusetts 


100 




74 


Minnesota 


100 




35 


Missouri 


86 




75 




100 


Nevada 


100 




100 




100 




36 




66 


North Carolina 


100 


North Dakota 


9 


Ohio -- 


54 


Oklahoma . . 


10 




■100 


Pennsylvania . . 


IS 




100 


South Carolina . _ ... 


100 


South Dakota 


100 


Tennessee 


74 


Texas 


8 


Utah. 


90 


Vermont . 


100 




43 


Washington 


83 


West Virpinia. _ 


S 




100 


Wyoming . . 


11 






Total value . .. . 


4,209,900 


22 


45 


33 







' In these calculations adjustments have been mnde In the Bureau of 
Mines data to mnke them apply ns nearly as possible to the source of 
supply. For example, iron ore Is substituted for pig Iron. 



' Value not given separately. Production is negligible. 

' Includes value of coal, not given separately. 

3 Less than 0.5 percent. 

Source: MineraU Yearbook, Rmev> ofWiO. 

provided is, as a rule, small in comparison to that in 
succeeding stages of processing or manufacture. 

Among the metallic ores, four types require special 
analysis because of their volume. In 1939 iron ore 
accounted for 34 percent of the total for metallic ores, 
copper ores for 38 percent, lead-zinc ores (all types) 
for 15 percent, and gold-silver ores for 12 percent. 
All other metallic ores, including such important ones 
as bauxite, manganese, molybdenum, tungsten, and 
vanadium, constituted scarcely more than 1 percent of 
the total. These percentages are a clue to the bulk of 
material that has to be moved at the mine. There are, 
of course, great differences in accessibility that would 
necessitate variable effort for a given quantity of ex- 
traction. The chief cost difference would be between 
open-pit and underground operations. Open-pit min- 
ing of such minerals as iron ore and copper ore can 
yield huge volumes at minimum outlays per ton. 



22 



National Resourues Planning Board 




Subbitufninous 



U. S. Geological Survey, Department of Interior 



Figure 9. — Coal fields of the United States 



Subject to these qualifications, the data on proportions 
of ores extracted roughly indicate the magnitude of 
industry directly concerned in mining operations. 

Much of the influence of mineral resources on loca- 
tion of industry depends on the extent to which the 
bulk of the ore is reduced at the mine. As a rule, non- 
metallic minerals are shipped from production areas 
without substantial reduction. The major items — coal, 
petroleum, stone, sand, gi-avel, and cement — undergo 
little weight loss from the source to the point of final 
use. Complete weight loss by fuels during use pre- 
cludes effects on location from salvage of scrap ma- 
terials, or from use over an extended period, whereas 
stone, sand, gravel, and cement may be converted from 
one form to another and may be used over long periods. 

Durability and repeated use decrease the locational 
pull of materials because the amortization charge is 
reduced relative to that on goods requiring comparable 
outlays but having a short life. Steel for construction 
of a flour mill may be shipped great distances in re- 
sponse to the locational pull of a small favorable cost 
differential on flour production involving a rapid turn- 
over of product. The cost factor in materials should 



be considered with regard to use during a given period 
of time rather than to initial outlays for the materials. 
The major nonmetallic mineral resources, except 
fuels, are present in almost all States in sufficient 
abundance to meet most local needs, giving no region 
a clear locational advantage. 

Mineral Fuels 

"Wlien, however, mineral fuels are considered, a 
markedly different conclusion is reached. The great 
buLkiness of these materials has already been observed. 
More than two-fifths of the originating railroad freight 
tonnage, including manufactured and semimanufac- 
tured commodities, consists of coal, coke, crude petro- 
leum, and petroleum products. Since fuels disaj^pear 
entirely, or almost entirely, during use, inunediate re- 
placement becomes necessary for continued operation, 
and this replacement seldom takes place from stocks 
on hand over long periods of time. Consequently the 
consuming industry must keep in close touch either 
directly or through middlemen with the source of sup- 
ply. Certainty of supply is often important, partic- 
ularly if output is of the continuous process type, as in 
the production of pig iron or manufactured gas. 



Industrial Location a/nd National Resources 



23 




Po 

(Areas tn small parts o^ 
which oil will be found) 



V. S. Geological Survey 

FiGUBE 10. — Classification of areas according to relative likelihood of producing commercial quantities of oil 



Mineral fuel resources usually are more localized 
geographically than are the other leading nonmetallic 
mineral resources, although they are far from being as 
limited in area as, for example, high-grade iron ore re- 
serves. Texas alone has 56 percent of the proved peti'o- 
leum reserves of the Nation, California has 17 percent, 
Louisiana 6 percent, and Oklahoma 5 percent. Thus 
these 4 States, 3 of which are contiguous, have 84 
percent of the total reserves. It might appear that 
petroleum resources would exert a strong influence on 
location, but all these States are outside the area of 
manufacturing concentration in the Northeast. 

Several factors help to explain this wide gap between 
location of petroleum resources and industry. Prob- 
ably first in order of importance is the newness of pe- 
troleum as an industrial fuel. The transition from the 
kerosene-lamp stage to the automotive stage has occu- 
pied hardly more than 35 years. The first large-scale 
use of gasoline was in passenger automobiles. The great 
expansion in consumption of i)etroleum products for 
trucks and tractors has come since "World War I, and 
that for steam production and for stationary Diesel 
engines since about the middle 1920's. This devel- 



opment has been too recent to have a profound 
influence on the location of industry although a 
strengthening of the influence may be expected in the 
future unless depletion of reserves in existing areas 
and shifts to other sources in the United States or 
abroad begin before long. The attraction of industry 
to the areas of large petroleum reserves has been re- 
tai'ded no doubt because initial areas of petroleum pro- 
duction were in western Pemisylvania, the first well 
having been completed in 1859, near the heart of the 
manufacturing belt, where supplies helped to reinforce 
the existing concentrations in location. At the outset 
transportation costs were inordinately high; the liquid 
was hauled at great expense by teamsters to points of 
consiunption, or to rail or water transportation. As a 
result outlying areas were at a disadvantage. Petrol- 
eum and its products are now transported by pipe line 
or tanker at costs far below even those of the' railroad 
haul. Regicmal differences in oil prices are now com- 
paratively small. Gasoline and fuel oil may be trans- 
ported 2,000 miles by pipe line and 3,000 by tanker with 
an increase in price of 1p>;s than one-third. Such an in- 



24 



National Resources Planning Board 



crease is likely to represent such an insignificant pro- 
portion of the final value of the product that it may 
easily be outweighed by other factors. 

Coal exhibits in marked degree the characteristics 
that influence the location of industry. It is still the 
most imjiortant fuel used in manufacturing, being more 
than four and one-half times as large, on a heat-value 
basis, as oil and about four times as large as natural 
gas.- In 1939, 44 percent of the coal taken by manu- 
facturing industries was made into coke, 67 percent 
of which was used in iron and steel manufacture. The 
coke and the iron and steel industries consumed over 
one-half the coal taken by all manufacturing industries. 

Whereas oil and natural gas are used extensively for 
residential purposes and by transportation industries, 
bituminous coal is used to a large extent by industries 
that more directly determine or influence the location 
of economic activities. Anthracite, however, is mainly 
a residential and small commercial-industry fuel, and 
consequently the anthracite resources would be ex- 
pected to have a limited locational effect. A probable 
reflection of the relative locational significance of coal 
and oil resources is the fact that in 1939 the dominant 



= Based on Bureau of Census, CciiSKs of Maniifacttircs: 19.19, pre- 
liminary report on fuel, processed release issued May 5, 1941 ; and on 
Bureau of Mines, International Coal Trade, May 31, 1941, p. 16. 



manufacturing section north of the Potomac and Ohio 
Rivers and east of the Mississippi River, which in- 
cludes or is close to coal-mining areas, consumed 77 
pei'cent of the coal (anthracitic and bituminous) taken 
bj' manufacturing industries and 67 percent of the 
fuel oil used in those industries desjjite the location 
of the major oil fields far outside of the section. Fuel 
oil was transported great distances into the area for 
use in manufacturing, much more than coal was 
transported out for factory use in other areas. 

In terms of tonnage coal is more important than any 
other material used in industry. Transportation 
rapidlj' increases its cost; a railroad haul of less than 
300 miles may increase the j^rice to double that at the 
mine. Although water transportation of coal is 
markedly cheaper than railroad transportation, most 
of the coal production is not on navigable waterways, 
and therefore coal requires haulage by railroad or 
truck except for the small portion used at the mine. 
The large expense of haulage is an incentive to locate 
close to the mine and especially so for basic metals 
that consume large amounts of coal for smelting. 

The locational pull of coal would be weak if coal 
resources -were more evenly distributed. Indeed, 31 
States have appreciable resources of coal and the 




FiGUEE 11 



Industrial Location and National Resources 



25 




MINE PRODUCTION OF IRON ORE IN THE UNITED STATES, 
BY COUNTIES, 1939 



r\ 



V 



iy ESTIMATED PRODUCTION 

2j OATa COMBINED FOR TWO flOjaCENT COUNTIES 

SOURCE BASED ON Data FROM MINERALS YEARBOOK 1940 




o = LESS THAN 100,000 TONS 



PDEPARED IN OFFICE Of THE NATIONAL RESOURCES PLANNING BOARD 



Figure 12 



SI" 



MINE PRODUCTION OF COPPER IN TERMS OF RECOVERED METAL 
■-/->.,_ IN THE UNITED STATES. BY COUNTIES, 1939 




_!; DATA COMBINED FOR TWO ADJACENT COUNTIES 
SOURCE eaSeo ON DATA FROM MINERALS VEAReOOK, 1940 



niEPAOtD IN orncE or the naiiomal REsou*tES ^vanning board 
•41-1786 — 43 3 



Figure 13 



26 



A'ational Resources Planning Board 




(NIO 14 OlliCL 01 InC NiliONjli BlSOtiltU Fliniint; BD*><0 



Figure 14 



W: 



MINE PRODUCTION OF ZINC IN TERMS OF RECOVERED METAL 
IN THE UNITED STATES, 1939 



^ 



\^ 




PRODUCTION NOT ALLOC&Teo 

BT COUNTIES TOTAL PRODUCTION 
rOfi THESE COUNTIES-56,000 TONS 



SHORT TONS 



SOURCE BASED ON OflTa FBQm wNEftflLS YEiRBOOlf. "9«0 



r«t»MD IM Ofnu or tmi Ntnoxn RtsouKU pl*"i 



Figure 15 



Industrial Location and National Rcsowcex 



27 



STONE SOLD OR USED BY PRODUCERS IN THE UNITED STATES, 
BY STATES, 1939 




SOURCE BASED ON DATA FROM MINERALS YEARBOOK, 1940 



PflLPARED IN OFFICE OF THE NAIlONAl flESOURCES PLANNING BOARD 



Figure 16 



SAND AND GRAVEL SOLD OR USED BY PRODUCERS IN THE UNITED 
)^----_ STATES, BY STATES. 1939 




SOURCE BASED ON DATA FROM WiNEftALS YE AflBOOK.1940 



ntEPMfo IN ornct or the hatiohh tilsouKts planning boakd 



Figure 17 



28 



National Resources Planning Board 




CO / 



•a, t . 

I I III 







P 
a 



Indvjstrial Location cmd National Resources 



29 




PRODUCTION OF PORTLAND CEMENT IN THE UNITED STATES, 

BY STATES, AND LOCATION OF PRODUCING PLANTS, 

BY COUNTIES, 1939 



r \ 







\ 



V 



SOURCE 8AS£D ON OflTfl FROM MINERALS YEflRBOOK. 1940 AND PiT AND QUARRY HANDBOOK I9qi_ 




• PLANT LOCATION 
ARREL : 376 LBS NET 



PREPAREO IN Office Of TH[ NATIONAL RCSOURCES PLANNING BOARD 



Figure 19 



general impression given by a map of coal resources 
is that they are widely scattered and that accordingly 
there is no need to concentrate coal mining in certain 
areas. This conclusion, however, overlooks the excep- 
tional variability in quality and occurrence of coal 
beds. The coal beds vary in thickness, pitch, and 
purity. Reported measurements of coal resources as- 
sume only minimum standards that are far below the 
practical standards for mining at the present time. 
The heat value of coal varies from less than 6,000 
British thermal units per pound to more than 14,000. 
In addition there are other properties such as brittle- 
ness, tendency to caking, ash and sulphur content. 
The quantity of coal suitable for metallurgical indus- 
tries is really very limited, and the Appalachian coal 
region has the good fortune of containing by far 
the richest deposits of this basic resource. This fact 
helps to explain why this region has 70 percent of 
the coal production in good years, even though it has 
less than 20 percent of the estimated coal reserves 
measured in terms of tonnage and disregarding rank. 
Industries that do not require special qualities in 
coal, of course, are free to locate over a wider area, 
insofar as nearness of coal is a factor. It would in- 
deed be an exaggeration to say that existing geo- 
graphic patterns of coal use are inevitable. Areas of 
production may be shifted in response to numerous 



factors in the coal industry, in transportation, or in 
consuming industries. Coal resources unlike oil re- 
sources are well known, and, therefore, spectacular 
sliifts based on exploration are not probable, but tech- 
nological changes, such as improved methods for min- 
ing thin beds or for production of cokes, may lead to 
mining of supplies in new locations. Moreover, recog- 
nition must be given to the fact that locational factors 
not connected with coal may result in drawing of coal 
supplies from one portion of the reserves rather than 
from another. In other words, somewhat wide avail- 
ability of coal may permit a concentration of industry 
in one region that would not be possible if coal were 
not available locally. Thus coal resources exhibit in 
numerous instances a rather neutral effect on location 
because of the broad geographic distribution found 
so commonly among other nonmetallic minerals. On 
the whole, nevertheless, the locational influence appears 
to be considerable for the reasons cited earlier. 
Metallics 

Wlien metallic minerals are compared with nonme- 
tallic minerals certain typical differences appear. 
Some of the important ones from the standpoint of 
location are: (1) greater reduction of bulk of the 
former during the early stages of processing, (2) 
larger number of stages of handling, and (3) larger 
spread in the value of the final product from the 



30 



National Resources Planning Board 



PERCENTAGE DISTRIBUTION OF VALUE 

AND OF WEIGHT: METALLIC ORES 
PRODUCED IN UNITED STATES, 1939 



GOLD a SILVER 

IRON 

COPPER 

LEAD a ZINC 

MOLYBDENUM 

TUNGSTEN 

MAGNESIUM 

BAUXITE 

ALL OTHER 




40 



10 20 30 

PERCENT OF TOTAL VALUE OR WEIGHT 
♦ value of metal CONTENT OF ORE 

Figure 20 

value of the mineral when it is first extracted. Cop- 
per, aluminum, and iron resources, for example, 
may undergo an almost infinite multiplication of value 
during the course of utilization, whereas petroleum, 
stone, coal, natural ga3, and other nonmetals are subject 
to a limited amount of manufacture and other handling. 
The reduction of bulk of metallic minerals is es- 
pecially noteworthy in this discussion of the influence 
of resources. Reductions of bulk owing to cutting off 
of waste ends to get desired shapes and sizes is a 
factor in the later stages of utilization. More directly 
connected with use of resources is the reduction in the 
earlier stages of metal from the ore. A survey of 
this factor discloses two facts of outstanding signifi- 
cance to location of industry. One is the large reduc- 
tion of weight of major metallic minerals, except iron 
ore. The other is location of all or most of the reduc- 
tion at or near the area of mining, iron ore again being 
the glaring exception. In 1939 almost as much copper 
ore was mined as iron ore, about one-third as much 
gold and silver ore, and about two-fifths as much lead 
and zinc ore. But note that the copper ore yielded 
less than 2 percent copper metal, gold and silver ore a 



small fraction of 1 percent metal, and lead and zinc 
ore less than 4 percent metal, whereas the average yield 
of the iron ore was 50 percent... 

A comparison in terms of refined metal, however, 
disregards the additional influence that the location 
of refining may have on the quantity of material to 
be transported to the point of use. Iron ore is trans- 
poited in crude or nearly crude form all the way from 
the iron mines to iron and steel plants that account 
for a substantial part of manufacturing employment. 
The dominant movement is from the Lake Superior 
district to iron and steel centers in Illinois, Indiana, 
Michigan. Ohio, Pemisylvania, and New York, all 
ill the manufacturing belt. Other leading domestic 
metallic minerals (bauxite might be considered an ex- 
ception) are refined or partially refined near the source 
of supply, so that the bulk requiring shipment is 
markedly reduced. This centering of refining of non- 
ferrous metals at the source of supply has a twofold 
effect on the location of industry. In the first place it 
attracts some industry besides mining. Centers in 
Montana, Utah, Nevada, and Arizona are commonly 
supported by this type of activity. These States, how- 
ever, do not have large populations nor large manu- 
facturing industries because of the second effect of this 
refining on location. The reduction of bulk at scat- 
tered sources of supply facilitates location of further 
uses of the material in other areas where product 
combinations, markets, labor supply, or other locational 
factors offer attractions. Refining of ores at the 
source, usually by simple processes that do not employ 
much labor or add greatly to local income, actually 
increases the freedom of location for the later stages 
of production that may become a prolific source of 
employment and income for the economic support of 
an area. As a result, the locational pull of the non- 
ferrous metals is likely to be comparatively weak. 

Among the metals the transported bulk of materials 
consists overwhelmingly of iron ore. Considering that 
iron ore is hauled long distances in crude form, whereas 
other metals are refined near the source, the tons of 
material transported away from iron mines is at least 
20 times that from all other metallic-mineral mines 
combined. The gravitation of large segments of in- 
dustrial activity to the junction point of iron ore and 
coal is, therefore, quite in line with a balancing of 
locational forces. Undoubtedly the iron-ore resources 
in the Lake Superior district, the coking-coal resources 
in the Appalachian coal region, and the Great Lakes 
waterway acting as a low-cost transportation coimect- 
ing link have been the dominant elements among 
resources affecting the location of the steel industry 
and of other industries as well. 

An explanation of location in terms of dominance, 
of course, omits much of the problem. Analysis of 



IndustTial Location and National. Resources 



31 



location of specific industries involves numerous fac- 
tors other than resources and therefore will not be 
considered in this chapter, which is concerned with the 
geographic distribution of resources and evaluation of 
resources as one type of locational influence. 

Raw Material Transportation Costs 

Considerable stress has been placed on the relative 
weight of materials as a guide to the bulk to be handled 
in extraction, storage, and shipment to markets. Such 
an approach would be open to serious question if raw 
materials were compared with semifinished or finished 
articles that involve special problems of handling. 
But crude materials for industry, with a few excep- 
tions, can be handled by simple, large-scale methods 
and, accordingly, comparisons in terms of weight are 
reasonably valid. 

Data made available for 1932 in the report of the 
Federal Coordinator of Transportation indicate the 
appi"oximate range of variation of railroad freight 
outlays for basic materials. Despite variations in 
length of haul and load per car, the freight per ton- 
mile for an)' of the chief raw materials or raw-ma- 
terials classes is not as much as three times as large 
as that of another, at table 7 indicates. The widest 

Table 7.— Railroad freight revenue, length of haul, and load 
per car. United States averages 6i/ commodities for traffic 
originated, 1932 



All commodities (iDcluding 

manufactures) 

Wheat 

Corn 

Flour, wheat 

Mill products, n. o. s .-. 

Cotton in bales ._- 

Oranges and grapefruit — 

Apples, fresh 

Potatoes, other than sweet 

Vegetables, fresh, n. o. s.._ 

Cattle and calves, single-deck... 

Hogs, double-deck 

Fresh meats, n. o. s 

Anthracite 

Bituminous coal 

Coke 

Iron ore 

Copper ore and concentrates — 

Lead ore and concentrates 

Zinc ore and concentrates 

Ores and concentrates, n. o. s. . 

Gravel and sand 

Stone: broken, ground, or 

crushed 

Petroleum: crude 

Asphalt - 

Petroleum oils, refined and all 

other gasolines.- 

Lumber: shingles and lath , 

Iron: pig 

Scrap iron and scrap steel 

Copper: ingot, matte, and pig. 
Lead and zinc: ingot, pig, or bar 
Aluminum: ingot, pig, or slab 
Cement: natural or Portland . 
Salt 



Freight 
reve- 
nue 

per car 



DollaTS 
125.6 
1-18.6 
124.1 
95.1 
64.2 
90.2 
471.2 
236.7 
164.3 
304.8 
■ 78.2 
99.7 
188.0 
99.6 
124.3 
67.9 
67.4 
15.2 
37.8 
113.6 
160.2 
45.8 

49.5 
111.1 

129.7 

148.9 
154.6 
104.8 
82.8 
3,59. 4 
247.4 
342.0 
107.0 
134.5 



age 
haul 



Miles 

353.0 

319.3 

291. 1 

f 6S. 6 

407. 7 

410.5 

2. 1 25. 8 

1, 162. 1 

741.4 

2. 063. 3 

408-6 

541.2 

917.6 

174.1 

361.9 

182. 4 

133. 8 

29.5 

52.1 

351.7 

478.8 

69.7 

86.4 
403.2 
29.5.4 

350.9 
747.0 
202. 1 
140.6 
1,181.1 
952.8 
809.1 
195.8 
483.2 



Freight 
reve- 
nue 

per car- 
mile 



Dollars 
0.356 
.465 
.426 
.167 
.1,58 
.220 
. 222 
!204 
. 222 
.148 
.192 
.184 
. 205 
.572 
..343 
..372 
..504 
. 516 
.726 
. 323 
.:i36 
.657 

..574 
.275 
.439 

.424 
.207 
.518 
.,589 
.304 
.280 
.423 
.546 
.278 



Aver- 
age 
load 

per car 



Tons 
34.5 
44.4 
40.4 
24.3 
22.3 
12.2 
17.7 
16.2 
17.9 
11.5 
11.6 
13.0 
12.4 
,50.8 
.52.7 
32.8 
60.8 
55. 
R2. 3 
49.2 
,50.8 
65.7 

55.4 
34.4 
3.5.1 

28.2 
26.1 
.54.0 
42.3 
42.8 
42.4 
26.5 
38.8 
29.0 



Freight 
reve- 
nue 

per ton 



Dollars 

3.64 

3.34 

3,07 

3.91 

2.88 

7.40 

26.64 

14.66 

9.17 

26.48 

6.73 

7.69 

15.09 

1.96 

2.36 

2.07 

1.11 

.28 

.72 

2.31 

3.17 

.82 



3.23 
3.70 

5.27 
5.93 
1.94 
1.96 
8.39 
5.83 
12.93 
2.76 
4.67 



Freight 
reve- 
nue 

per ton- 
mile 



Cents 
1.03 
1.05 
1.05 
.69 
.71 
1.80 
1.25 
1.26 
1.24 
1.28 
1.65 
1.42 
1.65 
1.13 
.65 
1.14 
.83 
.94 
1.39 
.66 
.66 
1.18 

1.04 
.80 
1.25 



I. SO 
.79 
.96 

1.39 
.71 
.61 

1.60 

1.41 



PERCENTAGE DISTRIBUTION OF VALUE AND OF 

WEIGHT: NON-METALLIC MINERALS PRODUCED 

IN UNITED STATES, 1939 

10 20 30 40 50 



PETROLEUM 

COAL 

NATURAL GAS 

CEMENT 

STONE 

NATURAL GASOLINE 

SAND a GRAVEL (BLDGJ 

RAW CLAY 

SULPHUR 

LIME 

SALT 

PHOSPHATE ROCK 

POTASSIUM SALTS 

BROMINE 

SLATE 

ALL OTHER 




10 20 30 40 

PERCENT OF TOTAL VALUE OR WEIGHT 



Source: Federal Coordinator of Transportation. Freight Traffic Re- 
port, lO.'JS, .\ppendix I, pp. 72-75. Iiata on freight revenue per car-mile 
and average load per car were calculated from a^gre:;ates on originating 
traffic. 



Figure 21 

spread is from 0.61 cent per ton-mile for lead and 
zinc ingots, pigs, and bars, which have an average liaul 
of 953 miles, to 1.80 cents per ton-mile for baled 
cotton, which has an average haul of 411 miles. Most 
of the other rates are within a much smaller range. 
This small spread in rates is in sharp contrast to 
marked differences in the bulk of raw materials used 
in industry. 

Low-cost water transportation of raw materials is 
important principally for iron ore on the Great Lakes, 
for coal on the Great Lakes and at Atlantic tidewater, 
and for oil in the movement from the Gulf coast to 
the Atlantic coast. Pipe lines also provide low-cost 
transportation for oil and natural gas. Coal and iron 
ore are usuallj' hauled by railroad even though thoy 
may also be shipped by water, but water routes have 
had a profound effect on location both directly and 
through pressure on the railroad rate structure. 

The most notable departures from a standardized 
basis for utilization of resources for industry are 
the perishable foods, such as milk, meats, and many 
fruits and vegetables. In fact nonmineral products 
are to a considerable extent in a class apart from 
mineral products. Accordingly a separate analysis of 
nonmineral resources follows. 



CHAPTER 2. NONMINERAL RESOURCES 

By John K. Rose* 



Nearly all of the 3,022,387 square miles of continen- 
tal United States are productive of some plant or 
animal products which directly or in derivative form 
constitute the major portion of the nonmineral indus- 
trial resources of our Nation. Year after year there 
pours out from farm, forest, and ranch a stream of 
products, much of which constitute, directly or indi- 
rectly, raw materials for manufacturing. The annual 
food-product bulk alone amounts to more than 200 
billion pounds. Fibers and other nonfood products 
make up a lesser bulk but are nevertheless essential 
raw materials for many economic activities. The in- 
land waters and the more expansive waters of the con- 
tinental shelf, both inshore and offshore, contribute to 
the total. 

Food 

The variety, abundance, and cheapness of food from 
time to time and place to place are factors in the effi- 
ciency and cost of labor and are significant in areal 
and time cost-differentials of industrial production. 
More than that, the primary processing of food makes 
up a significant sector of American industry. 

Types and Amounts of Food 

Enormous food supplies of great value were avail- 
able for processing and consumption in 1940, as indi- 
cated by the summary figures on the domestic product 
shown in table 1. Both the weight and value of our 
food production have reached astronomical figures. 
Total production in 1940 exceeded 240 billion pounds, 
of which somewhat under 200 billion pounds were con- 
sumed in the United States. The wholesale value of 
the total product was probably over 10 billion dollars.' 
Animal products had a somewhat lower poundage than 
plant products, but the ratio of their value to that of 
plant products was approximately 3 to 2. (The weight 
and value of some plant products, such as corn, which 
are chiefly used for animal feed, are included under 
animal products.) Wheat and dairy products bulked 
large in total poundage, but meats were by far more 
valuable. The data also suggest that supplies were not 
greatly in excess of domestic consumption, except for 
wheat. 



Farm Income by Types of Products 

Farm production, in contradistinction to, but in- 
clusive of, food production, is presented in table 2, with 
a break-down for livestock and crop products. In ad- 
dition, much is revealed as to the location of the pro- 
duction facilities, insofar as they may be revealed by 
cash income of farm products by States. It is clear 
that some sections of the country which stand high in 
livestock and livestock products (for example, some of 
the stronger dairying and grazing States) are much less 
active in producing and marketing crops directly. 

Imports and Exports of Food 

Our domestically produced food supplies were in 
1940 somewhat reduced by export, apparently of ma- 
terials not urgently needed for home consumption, 
and they were augmented by import of food products, 
mostly of types not efficiently produced in the quantity 
and quality needed for consumption in the United 
States, particularly products from the Tropics. Ex- 
ports and imports of food were as follows in 1940 : - 

Exports Imports 
Animals and animal products, edible. $71, 320, 239 $72, 746, 050 
Vegetable food products and bev- 
erages 168,601,497 489,809,820 

Exports are closely balanced against imports in the 
case of animal products, whereas in the case of plant 
foods, of which sugar, coffee, whiskey, and bananas 
make up a large part of the total, we import much 
more than we export, except in those years when 
export wheat is a major factor. 

The Producing Machine 

Industrially, it is not alone information on the types, 
amounts, and values of food normally available for 
processing and consumption that matters, but also the 
more strictly geographic aspects of the present and 
future supply. Of basic concern are the questions of 
where and under what conditions the more important 
types and amounts of food are produced, and what 
areas appear to have significant potentials of produc- 
tion for the future. According to the census of 1940 
there were 30,151,076 persons living on 6,096,789 ^ farm 



•Senior Economic Analyst, Rural Electrification Administration. 
' Comparisons of food supplies with other t.vpes of materials are 
shown in chapter 1, tables 1-3. 



^Monthly Summary of Foreign Commerce of the United States, 
December 1940. Department of Commerce. Washington, 1941, pp. 
and 21. 

^Sixteenth Census of the United States, B'lO, Agriculture, vol. 1. 

32 



Industrial Location and National Resources 



33 



Table 1. — Weight and wholesale value of domestic fond supplies 
and apparent domestic consumption. United States, 19^0 



Commodity 


Total food 

supplies in 

the United 

States 


Estimated 
wholesale 
value of do- 
mestic food 
supplies 


Estimates of 
apparent do- 
mestic con- 
sumption of 
foods 


Animal products: 


1,000 pounds 
18.832.000 
2.828,000 
5, 612, 500 
2,395,000 

70.000.000 
2. 480. 000 
1,500,000 


1,000 dollars 

2,694,813 

523, 180 

7.55,884 

658, 378 

1,274,833 
146,320 
163. 000 


1,000 pounds 
18, 053, 000 


Poultry meats (dressed weight) 

Eggs . 


2, 764, 000 
5,112,500 


Butter 


2, 300, 000 


Dairy products other than butter, 
in terms of whole milk 


63. 300. 000 




2, 080, 000 


Fish' 


1,400,000 






Subtotal 


103,647,500 


6. 216, 408 


95, 009, 500 






Plant products: 
Wheat 


66.060,000 
1, 785, 000 

19. 086. 000 
3,174.000 
1,275,200 

14, 206, 000 
3,510.000 

23. 880. 000 
3, 720, 000 
1,950,000 
3,200,000 


1,027.233 
66,045 

700. 000 
180. 000 
50.000 

675. 000 
277. 000 
596,000 
78,120 
75. 055 
200, 137 


30, 540. 000 


Rice 


1, 200, 000 


Fruits: 

Fresh 


18. 252. 000 




2, 760, 000 


Dried 


840, 000 


Vegetables: 

Fresh .. 


14, 018, 000 


Canned _ __ 

Potatoes . __ 


3.180.000 
20, 280, 000 
3, 000, 000 




Dry edible beans 


1,360.000 


Other domestic edible fatsandoils'- 


2, 125, 000 


Subtotal . 


141,846,200 


3, 924, 590 


97, 645. 000 








246, 493, 700 


10, 140, 998 


192, 554, 500 







Table 2. — Cash farm income and Oovernment payments, by 
States, calendar year IBJ/O ' 

[Thousands of dollars] 



1 Data on fish are estimates for 1937, Alaska excluded. 

' Imported edible fats and oils excluded. 

SouucB ; Bureau of Agricultural Economics. Computed largely from 
data in The National Food Situation, Jan. 22. 1941. and Cash Farm 
Income and Oovernment Payments, I9i0. Feb. 19, 1941 ; July situation 
mostly used as base. 

units. The producing plant, the land and buildings 
of these farms, was valued at $33,644,263,274 in 1940. 
Of that value, buildings amounted to something like 
one-third, or $10,405,085,980, thus leaving a value of 
more than $20,000,000,000 for the farm land of the 
Nation, under conditions that certainly do not repre- 
sent inflated values. Implements and machinery used 
in operating the farms amounted to nearly one-third 
as much as the value of farm buildings, and about 
one-tenth as much as the value of farm land and build- 
ings taken together, or $3,059,266,327. A comparison 
of figures 22 and 23 •with figure 24 suggests that ap- 
proximately 90 percent of the 6 million farm units, 
and a slightly larger percentage of the farm popula- 
tion, are located in the eastern half of the United 
States and that natural conditions are properly to be 
associated with much of the asymmetry of those pat- 
terns.* The rough topography of much of the western 
half, together with low precipitation and, in some sec- 
tions, temperature handicaps, have been unfavorable 
to a dense farm settlement, except in a few sections 
which have irrigation systems or greater rainfall. 

Centralized Interior Pattern of Production 

The picture of the food-producing sector of our econ- 
omy as presented by sheer number of units is in need of 

* The broad distribution of a.i;rii ultural population and nctivity is 
discussed in cliapter 3, "Major Groups of E ononile Activit.v." 

424786 — 43 — —4 



State 


Income 
from 

crops 


Income 
from live- 
stock and 
livestock 
products 


Cash farm 
income 


Govern- 
ment pay- 
ments 


Cash in- 
come and 
Govern- 
ment pay- 
ments 


Maine 


30, 141 

6,102 
7,531 

31,123 
3,461 

21, 539 
103, 474 

48, 768 
80,001 

101, 136 
74, 518 

199,663 
85,547 
38,637 

112,368 

165 311 
62,601 

73, 018 
31,342 
61,346 
89. 450 

8. 083 
31. 825 
63. 634 
12.672 

168.301 
80, 470 

109, 778 
90.002 

74. 073 
66. 566 
62. 006 
81.629 

103. 295 
65. 0.34 
86.209 

262. 653 
47. 716 
42,883 
9,511 
47, 359 
14, 217 
31,813 
11,846 
1,633 
83,444 

49, 556 
412,627 


23,278 

16.158 

33. 738 

44. 486 

6.428 

33, 768 

224. 981 

65.994 

191. 989 

228.119 

209. 5.50 

336,211 

147,963 

264, 566 

27.5, 630 

513,960 

214.405 

56.608 

97. 196 

180. 826 

165.624 

10.822 

37. 726 
57. 380 
29.151 

38. 591 
18. 760 
33.851 
19,416 
72, 434 
58.717 
27.606 
32.911 
37. 736 
25. 178 
88,839 

230.050 
49. 757 
47,9.33 
44, 7.52 
84,4.33 
40, 723 
24.850 
33. 463 
11.779 
63.821 
60.292 

215, 943 


53,419 
22,260 
41,269 
75.609 
9.889 
55. 307 

328. 455 
104. 762 
271.990 

329. 255 
284.068 
,535. 874 
233. 510 
303. 203 
387.998 
679. 271 
277. 006 
129. 626 
128.5.38 
2.32. 172 
255, 074 

18, 905 

69, 551 
120,914 

11,723 
206. 892 

99. 230 
143.629 
109. 418 

146. 507 
125. 283 

89. 612 
114.540 
141.031 

90. 212 
175.048 
492. 703 

97.473 
90.816 
54.263 
131. 792 
54.940 
.56,663 
45,309 
13, 412 

147. 265 
109.848 
628. 570 


1.709 

401 

595 

619 

89 

662 

6,211 

1.108 

6,679 

16,971 

22,657 

3.5. 750 

12.773 

12,273 

40. .552 

49. 235 

2.5.091 

27,021 

20,016 

46, 296 

38,941 

571 

2,783 

4,724 

1,920 

14.876 

16, 787 

24, 419 
4,068 

13,318 
16,207 
25, 861 
32,681 

25, 726 
21,902 
25,638 
86,489 
14. 571 

8.167 
3.684 
10.112 
4,652 
3,986 
2,830 
226 
6.443 
5,699 


55.128 

22.661 

41.864 

76.228 

9.958 

55.969 

334.666 

105. 870 

278.669 

346.226 

306.728 

571, 624 

248,283 

315, 476 

428 .550 


New Hampshire 


Vermont - 


Massachusetts 


Rhode Island 


Connecticut . 


New York 


New Jersey _ . 


Pennsylvania .. 


Ohio 


Indiana.. 


Illinois 


Michigan 


Wisconsin... 


Minnesota 


Iowa 


728. .S06 
3no f)<)7 


Missouri 


North Dakota 


156 647 


South Dakota . 


148 554 


Nf^hraska 


278. 468 

294. 015 

19. 476 

72.334 


Kansas . 


Delaware 


Maryland 




West Virginia 

North Carolina 


43.643 

2'*1 768 


South Carolina 




Georgia 


168 048 


Florida 




Kentucky 


159 8'>5 






Alabama 

Mississippi ... . 


115.463 
147 ''^1 


Arkansas 

Louisiana . . 


166. 757 
112, 114 






Texas 


579. 192 


Montana 


112 044 


Idaho 


98.983 


Wvoraing ... 


57 947 






New Mexico. 


59. .592 


Arizona 


60 649 


Utah_ 


48. 139 


Nevada 


13 6.38 


Washington 

Oregon 


153. 708 
1 1.5 .547 




21, 840 650, 410 






United States 


3, 535, 712 


4, 818, 392 


8. 354. 104 


765,799 9,119.903 









1 Preliminary. 

Source: Crops and Markets, Vol. 18, No. 2, Washington, February 1941. p. 38. 

considerable refinement, for the farm units from one 
part to another of the country vary greatly in size 
and productivity, and some of them, particularly in the 
Cotton Belt, are specialized in nonfood jiroducts. For 
the United States as a whole, crops such as flax, to- 
bacco, cotton, and other materials occupy normally 
8 percent of the crop land. Nor does the income from 
all farm products as presented in table 2 provide 
sufficient detail. Food in some amount, variety, and 
quality is everywhere present, but quantitative pro- 
ductivity is much less evenly distributed. From the 
standpoint of industrial processing and consumption it 
is significant that 28 percent of the farm units are 
estimated to contribute only 3 percent of all farm 
products "sold or traded," that is, of total commercial 
production; and nearly half of the farms account for 
only 11 percent of the ccimmercial product, the re- 
maining half of the farms thereby accounting for 



34 



National Resources Planning Board 






Industrial Location and National Resowrces 



35 



CLIMATIC REGIONS OF THE UNITED STATES 




1 TROPICAL RAINY CLIMATE 

2 WARM DESERT CLIMATE 

3 DRY SUBTROPICAL CLIMATE 

4 HUMID SUBTROPICAL CLIMATE V, y 

5 INTERMEDIATE CLIMATE -SHORT COLD WINTER, 

LONG HOT SUMMER 

6 INTERMEDIATE CLIMATE- LONG COLD WINTER, 

SHORT HOT SUMMER 

7 MODIFIED HUMID CONTINENTAL CLIMATE 

8 WEST COAST MARINE CLIMATE 

9 MIDDLE LATITUDE STEPPE CLIMATE 

10 MIDDLE LATITUDE DESERT CLIMATE 

11 MOUNTAIN CLIMATE 



AFTER KOEPPEN, GEIGER.ANO OTHERS, ADAPTED FROM BENGTSON AND VAN ROYEN, 
FUNDAMENTALS OF ECONOMIC GEOGRAPHY, 1935 



PREPARED IN OFFICE OF THE NATIONAL RESOURCES PLANNING 60ARD 



Figure 23 



nearly nine-teiitlis of the commercial total." The 
3 million only slightly commercial farms are found 
predominantly in the South and Southern Appalachian 
areas. 

It is a further desirable refinement in the considera- 
tion of the location and nature of our food-producing 
resources to observe data on acreage of land available 
for crops, acreage of crops harvested, cash farm in- 
come in relation to total area, and the number of 
farms, as presented in table 3. All of tiiese data 
indicate that, whereas most of the faim units are lo- 
cated in the eastern half of the United States, and 
nearly half in the South and Southeast, food pro- 
ductivity, so far as it can be measured in terms of 
available or harvested crop, acreage, or the relative 



° O. E. Baker and Conrad Taeuber. "Tlie Rural People," in Farmrrs 
in a Changing World. Yearbook of Agriculture, KW, V. S. Dcpnrtmi'nt 
of Agriculture, p. 8344. 



income therefrom, is noticeably higher in portions of 
the middle or interior of the country than in the more 
peripheral areas. This centralized pattern would be 
even more noticeable if food products alone could be 
considered, for the Southeast, with many farm units 
and a comparatively large amount of land in produc- 
tion, utilizes a considerable fraction of its harvested 
acreage primarily for cotton. Tiiis quantitative pre- 
dominance of our midlands in food production is in- 
directly but strikingly illustrated in figure 24; that is, 
farm property values reflect not only natural fertility 
and the production of the past which has been rein- 
vested in improvements, but also man's judgment of 
future iiroductivity. The outstanding nature of the 
food-producing facilities of the East North Central 
and West North Central portions of the United States 
may be summarized roughly by indicating that this 
middle area, which is 25 percent of the Nation's areal 



36 



National Resources Planning Board 




UNITED STATES TOTAL 57.246.384,000 DOLLARS 



U- 5. oePARTMENT OF AGR ICULTURE 



BUREAU OF AGRICULTURAL ECONOMICS 



Figure 24 



total, has 34 percent of the Nation's farms, 50 percent 
of the total acreage available for crops, 53 percent of 
the harvested crop acreage, and 45 percent of the cash 
farm income. 

Production Facilities in Reserve 

Food production facility reserves may be examined 
from at least four points of view: (1) How many ad- 
ditional acres are available for cultivation or may be 
made available for cultivation; (2) what is the present 
status of land quality, trend thereof, and practical 
possibilities of improving quality; (3) may production 
be increased by more intensive cropping and by techno- 
logical and genetic improvements; (4) to what extent 
may certain crop areas be feasibly expanded if desired ? 

Though more than half of the land in farms, 
530,131,043 acres, or about 28 percent of our total 
acreage, is indicated as available for crops (distri- 
bution shown in table 3), the total harvested acreage 
of the principal crops in 1940 was only 333,825,300 
acres, the difference being due to crop failure, idle or 
fallow land, plowable pasture, or land devoted to minor 
crops. It is not to be supposed that this gap could 
be completely closed, for crop failure is sometimes un- 
avoidable, fallowing may in the long run increase pro- 
ductivity, and to reduce all plowable pasture to crop 
land would merely substitute crops for gi-ass already 
used for food production by live stock. Of the total 



acreage used in food production, it has been estimated 
that 73 jaercent was productive of animal products; 21 
percent of cereals ; 4 percent of vegetables ; and 2 jjercent 
of fruit.* Of the acreage harvested, it is estimated, after 
some adjustment, that more than 78 percent is devoted to 
products for domestic human consumption, nearly 9 
percent to products for export, and 14 percent to food 
for work stock.' The portions used by work stock and 
exported might in part at least be drawn upon by 
domestic industry in case of need. Of the more than 
1,500,000,000 acres considered as agricultural, only a 
little over 1,000,000,000 acres (Census of 1940) are in 
farms and something like 100,000,000 acres ' of the 
farm land are in woods not even pastured. 

A wide degree of variability in productivity is pres- 
ent in our land, not only as to whether it is crop land 
at all, but as to what crops it will best produce, and 
also as to how much and what quality of a particular 
crop may normally be produced per unit area. In 
table 4, an inventory of the land-productivity classes of 
the Nation by States is shown. In this classification the 
principal physical conditions influencing productivity, 
such as soil type, topography, rainfall, and temperature, 



^Agricultural Land Requirements and Resources, Part III of the 
Supplementary Report of tlie Land Planning Committee to the National 
Resources Board, Washington, 1935, p. 2 (cited subsequently by title). 

' H. R. ToUey, "An Appraisal o£ the National Interest in the Agri- 
cultural Situation," American Economic Review, Vol. XXX, No. 5 (pro- 
ceedings number), February 1941, p. 112. 

^Agricultural Land Requirements and Resources, p. 30. 



Industrial Location and National Resources 

Table 3.- — State comparisons of certain aspects of agricultural productivity 



State 


Total acreage ' 


Acreage avail- 
able for crops 
(1940) ' 


Total har- 
vested acreage 

of principal 
crops (191 J) • 


Cash farm 
income (1940) ' 


Cash farm 
income per 
acre of total 
area (1940) 


Cash farm 
income per 
acre of land 
available for 
crops (1940) 


Cash farm 
income per 

acre of 

harvested 

principal 

crops (1940) 




1,903,217,000 


530,131,043 


333,825,300 


$8,364,104,000 


$$4.39 


$16.76 


$26.03 








19,133,000 
5, 780, 000 
5,839,000 
5, 145, 000 
683,000 
3. 085, 000 


1, 589. 362 
690, 375 

1,478,066 
787.815 
93.211 
642,070 


1,343.000 
427.900 

1,093.300 
483. 100 
60.500 
450,300 


53,419,000 
22,260,000 
41,289,000 
75,609,000 
9.889.000 
65.307.000 


2.79 
3.85 
7.07 
14.70 
14.48 
17.93 


33.61 
37.70 
27.92 
95.97 
106.09 
86.14 


39.78 


New Hampshire 


62.02 




37.75 


Massachusetts . 


166.61 




163.45 


Connecticut 


122.82 






New England - . 


39,665,000 


5,180,899 


3,858,100 


257.753,000 


6 50 


49.75 


66.81 






New York -— . 


30. 499, 000 

4, 809, 000 

28, 692, 000 


10,236,846 
1, 156. 652 
9, 240, 159 


6, 690, 600 

734,000 

6.211,300 


328.455,000 
104, 762, 000 
271,990,000 


10.77 

21.78 

9.48 


32.09 
90.57 
29.44 


49.09 




142.73 


Pennsylvania . - -- -- 


43.79 






Middle Atlantic .-. - 


64. 000. 000 


20, 633, 657 


13,635.900 


705,207,000 


11.02 


34.18 


61.71 












26.074,000 
23.069.000 
35,868,000 
36,787,000 
35, 364, 000 


15,657,989 
14, 649, 999 

25,133.474 
11.898.762 
13,037,946 


10,191,000 
10,047,800 
18. 532. 900 
7. 707. 000 
10,165.800 


329, 255, 000 
284, 068, 000 
535,874,000 
233, 610, 000 
303,203,000 


12.63 
12.31 
14.94 
6.35 
8.67 


21.03 
19.39 
21.32 
19.62 
23.26 


32.31 


Indiana _ 


28.27 


Illinois 


28.91 




30.30 




29.83 








157,162,000 


80.378.170 


56. 644, SCO 


1,685,910,000 


10.73 


20.97 


29.76 








51,749,000 
35,575,000 
43, 985, 000 
44,917.000 
49,194.000 
49.157.000 
52.335,000 


22,974.024 
27. 547. 835 
23.007.358 
27. 100. 920 
23. 169. 296 
25.414,860 
34, 193, 430 


19,114.000 
20.961.000 
12.192.000 
16.917,200 
13,651.600 
17.321,700 
20, 324, 300 


387,998,000 
679,271,000 
277, 006, 000 
129,626,000 
128, 538, 000 
232.172,000 
255, 074, 000 


7.60 
19.09 
6.30 
2.89 
2.61 
4.72 
4.87 


16.89 
24.66 
12.04 
4.78 
5.55 
9.14 
7.46 


20.30 




32 41 




22.72 


North Dakota -- 


7.66 




9.42 




13.40 




12.55 








326,912.000 


183, 407, 723 


120,481,800 


2.089.685,000 


6.39 


11.39 


17.34 








I, 258. 000 

\ 6, 402. COO 

25,768,000 
15,374.000 
31,194.000 
19, 517. 000 
37.584,000 
35.111.000 


669, 683 
2,586.046 

7, 962, 361 
3,861,0.54 

8, 422, 275 
5, 629. 8.3S 

11.690,225 
2, 856, 588 


366, 300 

1,679,200 

3,791.000 
1.491,600 
6,461.800 
5,124.000 
10. 673, 100 
1, 620, 100 


18, 905. 000 
69,651,000 

120,914.000 
41,723.000 

206,892.000 
99. 230. 000 

143,629.000 

109, 418. 000 


15.03 

10. SB 

4.69 
2.71 
6.63 
5.08 
3.82 
3.12 


33.19 

26.89 

15.19 
10.81 
24. X 
17.94 
12.29 
38.30 


61.61 


Maryland - - 






41.42 


Virginia - 


31.90 




27.97 


North Carolina _ > . 


32 02 




19.37 


Georgia - - 


13.46 




67.54 








172. 208. 000 


43, 477, 965 


31,207.100 


810. 262. 000 


4.71 


18.64 


25.98 








25.716.000 
26. 680, 000 
32.819.000 
29.672,000 


13, 212. 628 
ll.l.W. 154 
10. 397. 273 
10. 702. 733 


5, 329, 900 
6, 112, 500 
7,847,600 
7,167,000 


146. 507, 000 
126.283,000 
89.612.000 
114,540,000 


5.70 
4.70 
2.73 
3.86 


11.09 
11.23 
8.62 
10.70 


27.49 


Tennessee - . _ . . .... 


20 50 




11.42 


Mississippi - . - - 


15 98 






East South Central , 


114,887,000 


45. 471. 788 


26,456,900 


475, 942, 000 


4.14 


10.47 


17.99 






ArkAnsA<t 


33,616,000 
29,062.000 
44.396.000 
167, 963, 000 


10. 190. 407 
6.038.067 
19.661.363 
46.261.857 


6, 146, 000 

4,155,000 

13, 208, 000 

25,826,200 


141,031,000 

90,212,000 

175, 048, 000 

492,703,000 


4.20 
3.10 
3.94 
2.93 


13.84 
14.94 
8.90 
10. 65 


22 95 




21.71 


Oklahoma .- -.... . . 


13 25 




19.08 








275,037,000 


82, 151. 694 


49,335,200 


898,994.000 


3.27 


10.94 


18 22 








93.624.000 
53.347.000 
62.431,000 
66.341,000 
78, 402. 000 
72.838.000 
52. 598. 000 
70.285,000 


14.789.043 
4.708.143 

3, ,'513,414 
12.898,689 

4, 572, 698 
992, 631 

1,762,296 
861,638 


6, 675. 000 
2. 724, 000 
1,868.200 
5. 569, 200 
1,372,200 

665. 400 
1.042.000 

372. 300 


97.473.000 
90.816,000 
54. 263. rOO 
131,792,000 
54,940,000 
56, 663. OflO 
45,309.000 
13,412.000 


1.04 
1.70 
.87 
1.99 
.70 
.78 
.86 
.19 


6.59 
19.29 
1.5.44 
10.22 
12 01 
57.08 
25.71 
15.57 


14.60 


Idaho - .... - - _ 


33 34 




29 05 


Colorado - . -. . 


23.71 




40.04 


Arizona -- . 


85.16 


Utah - 


43.48 


Nevada _ .. 


36.02 






Mountain . - . - _ . . . 


549.766,000 


44.098.552 


20,278,300 


544.668,000 


.99 


12.35 


26.86 






Washington - 


42.775.000 
61.188.000 
99.617.000 


7, 180. 1»4 
5,255.467 
12.894.974 


3, 547. 800 
2, 624, 700 
5.755,000 


147,265,000 
109,848,000 
628,570,000 


3.44 

1.80 
6.31 


20.51 
20.90 
48.75 


41.51 




4I.'86 


California 


109.22 






Pacific - 


203.i»0,000 


25, 330, 595 


11.927,500 


885,683,000 


4 35 1 M SR 


74.26 











' This column has not been corrected to correspond with the recent census revisions. 

•Sooece: Census of 1940. 

» Source: General Crop Report, December 1940, U. S. Department of Agricultin'e, Bureau of Agricultural Economics. 

< Source: Crops and Markets, vol. 18, No. 2, Washington, D. C, February 1941, p. 38. 



p. 47 



have been considered. It is as.sumed that the input of 
labor and capital will be that most nearly capable of 
maintaining the natural level of productivity, but with- 
out irrigation, additional drainage, or the addition of 
lime fertilizer or other amendments except nitrogen-fix- 
ing legumes. Thus, the intensity of input would ap- 



proximate roughly what might be considered as the 
average for the country as a whole. For example, irri- 
gated lands are rated somewhat unrealistically accord- 
ing to their conditions prior to irrigation, rather than 
subsequently. The grades range from 1 to 5, 1 being the 
most productive land; the first four grades (1, 2. 3, and 



38 



National Resources Planning Board 
Table 4. — Preliminary inventory of land productivity classes of the United Stales 





Total area 
(acres) 


Excellent— 
Grade 1 


Good— Grade 2 


Fair— Grade 3 


Summary- 
Grades 1-3 


Poor— Grade 4 


Nontillable— 
Grade 5 


State and geographic division 


Acres 


Per- 
cent' 


Acres 


Per- 
cent' 


Acres 


Per- 
cent* 


Acres 


Per- 
cent 1 


Acres 


Per- 
cent' 


Acres 


Per- 
cent' 


United States 


1,902,138,688 


101,037,573 


5.3 
100.0 


210, 934, 728 


11.1 
100.0 


345,871,800 


18.2 
100.0 


657.844,101 


34.6 
100.0 


362, 559, 173 


19.1 
100.0 


881,735,414 


46.4 




100.0 




19,172.800 
6, 759. 840 
6,839,360 
5,058.560 
682. 880 
3, 102. 080 






1,615,033 
237,212 
900,588 
759,807 
6,463 
338,620 




3, 788, 506 

370,426 

* 1,268,238 

1,274,906 

228,082 

902,062 




5, 403, 539 
609,968 

2,202.043 

2, 046, 619 
233,545 

1. 289, 134 




5, 791, 456 
1,671.601 
2,185,398 
1,644,463 
71,019 
962.120 




7, 977, 806 
3,478,271 
1,451,919 
1,367,488 
378, 316 
850,826 






2,330 
33, 217 
11,906 


















Connecticut -— 


48,452 








39, 615, 620 


95,905 


.2 
.09 


3,856,723 


9.7 
1.8 


7,832,220 


19.8 
2.3 


11,784,848 


29.7 
1.8 


12,326,047 


31.1 
3.4 


15,504,625 


39.1 




1.8 


New York 


30,304,832 
4,763,560 
28,760,428 


94,037 

6,272 

177, 151 




6, 863, 934 

943,268 

6, 268, 104 




9,248.628 

963,896 

9, 496, 900 




16,206.699 
1,913.436 
15. 942. 166 




9, 172. 273 
1.379.108 
5, 908. 804 




4,925,960 
1,471,016 
6, 909, 469 








Pennsylvania 




Middle Atlantic • 


63,828,820 


277,460 


.4 
.3 


14,075,306 


22.1 
6.7 


19, 709, 424 


30.9 
5.7 


34,062,190 


53.4 
5.2 


16, 460, 185 


25.8 
4.5 


13,306,445 


20.8 




1.5 


Ohio 


26, 072, 600 
23,034.624 
36.429,912 
37,051.336 
36, 682, .'iSO 


4, 214. 074 
5.262.498 
14.777.030 
2. 251, 166 
2.820,276 




6,234.205 
6,438.377 
6,847,145 
8, 961, 198 
14,629,981 




10.439.723 
7,743.581 
6.223.171 
5.386,738 
8. 396. 996 




20.888.002 
19,444.456 
27.847,346 
16, 599. 091 
25, 747, 262 




3.809.973 
2.436.801 
6.621.668 
7. 228, 991 
4,564,307 




1,347,625 
1,163,367 
960.998 
13.223,254 
5,271,021 
















Wisconsin 






167,171,052 


29,325,033 


18.7 
29.0 


43,010,906 


27.4 
20.4 


38. 190, 208 


24.3 
11.0 


110, 626, 147 


70.3 
16.8 


24, 661, 640 


15.7 
6.8 


21,983,265 


14.0 




2.5 




51,716,214 
36,633,920 
43,985.086 
44. 913. 036 
49.161.600 
49,116,928 
52,204.416 


12.022,243 
25,983,110 
8,674,763 

3, 052,' 326" 
8,120,907 
3,765,287 


------ 


12, 138, 815 
6,906,158 

13, 833, 050 
7,365,682 
8, 775, 365 
9,690,068 

16, 172, 236 





7.511.326 
1.392.680 
12.303.627 
17.715.865 
8.960.392 
9.639.648 
16. 964. 703 




31,672.383 
34,281,948 
34.811.440 
25,081.547 
20,788,077 
27. 450. 623 
34.902.226 


— 


6,898,992 
1,007.416 
4,258,868 
14,161,534 
15, 552, 419 
10,908,321 
11,207.323 




13, 144, 839 
344,556 
4,914,778 
5. 679, 955 
12.821,104 
10. 757. 984 
6. 094, 867 




Iowa 








North Dakota 








Nebraska 














326,731,200 


61,618,630 


18.9 
61.0 


73,881,374 


22.6 
36.0 


73. 488. 240 


22.5 
21.2 


208,988,244 


64.0 
31.8 


63,984,873 


19.6 
17.6 


53,768,083 


16.6 




6.1 




1,263,360 
6, 295. 744 
26.644.864 
16. 200. 288 
31,193,840 
19, 617, 208 
37, 684, 668 
34,903,454 






222,080 
1,874,627 
3, 663, 134 
1,360,227 
1, 166. 606 

296,359 
1,861.537 

933, 187 




360. 784 
1.445.544 
9.279.761 
2.986.643 

11.360,162 
7,069,969 

16,614.067 
3,928.412 




572,864 

3.463,803 
12, 932, 895 

4,725.421 
12. 526. 668 

7.366.328 
17.465.604 

4,932.760 




417, 216 
1,859.409 
7.312.200 
7. 647. 077 
9,381.729 
7.127.990 
9. 750. 361 
12.892,726 




273,280 
972,532 
5. 399. 769 
2,827.790 
9. 286. 453 
6.022,890 
10, 368, 603 
17.077,968 




Marvland and District of Colunibia 


143,732 
"388,551 






Virginia..^ 
























Florida 


71, 161 










South Atlantic 


171,603,326 


603,444 


.4 
.6 


11,347,667 


6.6 
5.4 


62,035.332 


30.3 
15.0 


63,986,333 


37.3 
9.7 


56.388,708 


32.9 
15.6 


51,228,285 


29.9 




5.8 




25,623,680 
26,629,376 
32,751,820 
29, 815. 218 


863,916 
902,258 




5,020,424 
4, 769, 847 
3,002,499 
6,336,459 




8.956.319 
9. 305, 437 
9.528.183 
8,614,697 




14,840,659 
14,977,542 
12,530.682 
14,795,386 




7,905,826 
8.239,726 
10, 730, 251 
10.928.882 




2, 877, 195 
3, 412. 108 
9. 490. 887 
4,090,950 




Tennessee . 








MiQ<;i'^ippi 


844.230 












114,820,094 


2,610,404 


2.3 
2.6 


18, 129, 229 


15.8 
8.6 


36,404.636 


31.7 
10.5 


57,144,269 


49.8 
8.7 


37.804,685 


32.9 
10.4 


19,871,140 


17.3 




2.3 




33, 643. 368 
29.076,904 
44, 446, 144 
168,074,368 

275,239,784 


1, 452, 484 
1,289,430 
1,700,604 
1,691,147 




7,952,405 
2,972,742 
12, 795, 160 
19, 460, 508 




9,231.149 
7,346,623 
15, 268. 765 
54,974.391 




18,636,038 
11,608,795 
29, 764, 529 
76,026,046 




8.299.905 
12. 442. 991 

7.825.636 
36. 960. 166 




6, 707, 425 
5,024,118 
6, 856, 079 
56.098,156 




Louisiana .- 




Oblf^hnTTifi 












West South Central . 


6,033,665 


2.2 
6.0 


43,180,815 


16.7 
20.6 


86.820.928 


31.5 
25.1 


136,035,408 


49.4 
20.7 


64, 618, 698 


23.4 
17.8 


74,685,778 


27.1 




8.5 




93, 370, 240 
63,346.660 
62. 414. 720 
66. 341, 120 
78,401.920 
72, 866, 400 
52, 597, 760 
70, 285, 380 










7.366.681 
949.208 
622.936 

7. 041. 281 
914.304 




7,366,681 
1,036,496 

522.936 
7, 326. 951 

914,304 




30,438,292 

3, 728, 908 

4,577,769 

13, 743, 839 

6,060,758 

949,313 

1,233,469 

76,900 


:i 


55. 565, 267 
48. 581, 156 
57,314.015 
45. 270. 330 
71.426.858 
71.916.087 
51,364.301 
70,208.480 










87,288 




















285,670 


























Utah 






























































549, 623, 100 






372,958 


.1 
.2 


16,794,410 


3.1 
4.9 


17,167,368 


3.1 
2.6 


60,809,238 


11.1 

16.8 


471,646,494 


85.8 








5.35 


Washington .. .. --. .. 


42, 759, 552 
61,128,960 
99,617,280 


83.520 
352, 536 
46,976 




542,138 

2, 069. 425 

478,297 




6, 637, 431 
4, 694. 464 
3, 364, 617 




7, 163, 089 
7,096,415 
3, 889, 790 




6, 760. 172 
5.464.700 
13,380,327 




28, 836, 291 
48. 667, 846 
82,847,163 








California _. _ -- 










203,505,792 


473,032 


.2 

.5 


3,079,860 


1.6 
1.5 


14,596,402 


7.2 
4.2 


18, 149. 294 


8.9 
2.8 


26,605,199 


12.6 
7.1 


159,751,299 


78.5 




18.1 



» The upper figure is the percent of the total acreage of a given area which is of a 
particular land-productivity class, and the lower figure is the percent of the total of 
each land-productivity class which is found in a specified area. 



SouBCB : Adapted from the National Resources Board, Report on 
National Planning and Public Works, Washington. Dec. 1. 1934. table 7, 
p. 127. 



Industrial Location and National Resources 



39 



4) are regarded as capable of producing cultivated crops 
without irrigation when cleared. Urude 1, roughly, is 
excellent for staple crops climatically adapted to the re- 
gion; grade 2 is good; grade 3 is fair; grade 4 is poor; 
and grade 5 is essentially incapable of tillage. Grade 4, 
however, comprising a little more than one-third of a 
billion acres, is distinctly low in physical productivity 
and is undesirable for standard arable farming except 
wliere uncommonly favored by couipensating economic 
advantages such as nearness to urban markets. Nearly 
one-half of the United States is put in grade 5, consist- 
ing of land practical^ incapable of producing culti- 
vated crops, because of ariditj', poor drainage, rough 
surface, or shallow or sterile soil ; this constitutes, then, 
the nearly irreducible minimum of area, the highest 
feasible use of which is, for the most part, grazing or 
forestry. More than two-thirds of these grade 5 areas, 
about 600 million acres in all, consist of arid lands of 
the Western States, mostly not in farms. Grade 4, 
which is physically capable of producing crops, con- 
tributes the greater part of the uneconomic arable 
farms, sometimes called marginal or submarginal 
farms. 

The wide variabilitj' of the several sections of the 
countrj' in respect to first- and second-rate land can 
be easily noted from the table. Whereas Iowa alone 
contains 25 percent of all the grade 1 land, none of the 
land in the Mountain States is naturallj- (without irri- 
gation) grade 1, and the Pacific Coast area contains less 
tlian one-half of one percent of the Nation's total of such 
land. In the long-farmed Northeastern States, only 
seven-tenths of 1 percent of their total land area is 
classed as excellent. An examination of table 4 indicates 
that 33 percent of the class 1, 2, and 3 soils are included 
in those 21 States which touch the oceans or the Gulf; 
these same States constitute but 36 percent of the total 
area of the United States, thus suggesting that the bet- 
ter soils are comparatively evenly distributed between 
the interior and the periphery of the country. However, 
a large portion of the western interior is automatically 
ruled out of class 1, 2, or 3 because of its lack of sufficient 
precipitation, thus reducing the status of the interior 
but not lessening the high quality of the East North 
Centi'al and West North Central sections which con- 
tain 90 percent of the class 1 land found in the United 
States. 

The quality of land may be improved by conservation, 
by slowing up the depletion and destruction of land by 
erosion, by replacing used or lost nitrates and humus 
by legumes, and by adding missing phosphates, lime, 
and potash in selected fertilizers. That the net result 
of land-use practices has been soil erosion, depletion, 
and deterioration, not conservation and improvement, 



is evident : 50,000,000 acres of once productive crpp land 
is now essentially ruined; another 50,000.000 acres is 
nearly as depleted ; and at least 500,000 farmers are at- 
tempt ing to farm land which is so poor and eroded as to 
offer no chance of yielding an American standard of 
living. 

The increased production of food from a given acre- 
age sometimes quite unrelated to increased soil fertility 
(in many cases depleting the present fertility more rap- 
idl}' than would otherwise be the case), is in many in- 
stances a result of improvement, genetically, of crop 
species — hybrid corn being the present best example. 
These factors in general appear to increase the normal 
spread of productivity between good and poorly pro- 
ductive soil. 

The problem of the adequacy of the potential food 
supply for future industi-ial processing and consump- 
tion has been discussed or referred to in several re- 
cently published studies," but is highly conqdex because 
of the indeterminate nature of related problems. Vari- 
able exports and imports, crop failure, mechanization, 
changes in diet, farmer and consumer psychology, in- 
dustrial diversion, standard of living, fertilization, 
conservation, the retirement of poorly productive acres, 
technology and genetics, population trends, all of these 
and others are factors having major or minor relation 
to the food-producing sector of our industrial economy. 
So far as the recent past and the present are concerned, 
the reverse of the expected Malthusian man-to-land 
ratio trend would appear to be the case — -we apparently 
have available suri^lus crop acres numbering many mil- 
lions, to say nothing of other acres which are not being 
adequately used. 

The Corn Belt 

Farmers have long experimented with the soils of 
many parts of the United States and no large areas 
have been found to be so i-egularly and largely pro- 
ductive as the deep, glacial till soils of the Corn Belt, 
predominantly of the blackish-brown Prairie type 
(fig. 25). Though corn is the leading cereal generally 
in the eastern half of the United States, it reaches its 
peak, both as to percent of total acres occupied and 
total production, in this interior section, which has else- 
where been noted as agriculturally outstanding in soil 
productivity, farm property values, and farm income. 
In this area man and land have fared well, erosion is 



» H. E. Selby, "How Many .\eres Do We Require?", Land Policy Re- 
view, vol. Ill, No. 5. September 1940. pp. S— 11. 

Oris V. Wells, "How Many Farmers Do We Require?". Land PoUev 
Review, vol. III. No. ."), September lil40. pp. 3-7. 

Agricultural Land Requirements and Resources, Part HI of the 
Supplementary Report of the Land rianning Committee to the National 
Resources Board, Washington, 1935. 

FT. R. Tolloy, op. cit. 



40 



National Resources Planning Board 




U.S.DEPARTMENT OF AGRICULTURE 



NEG. 31395 



BUREAU OF AGRICULTURAL ECONOMICS 



FiGUKE 25 



moderate, and incomes are substantial. The soils, 
supercharged with nitrogen, nevertheless do not have 
phosphorus and lime in particular abimdance. The 
area is definitely interior with all that this implies 
for economic, social, and governmental orientation. Yet 
the area has an interest in world markets, notably in the 
export of pork products, although this trade has fallen 
to about one- tenth its former volume. While the major 
center is Chicago, the agricultural economy is not tied 
to any one citj' but rather utilizes a score of secondary 
and numerous tertiary centers. Here a rich agriculture 
is interwoven with an increasingly complex industrial 
pattern. 

The Corn Belt makes its largest and most significant 
contribution to our food supply through the high- 
grade meats it produces, which are the derivatives of 
the corn, pasture, and hay of the area. Though the 
area contains less than half of the national acreage de- 
voted to corn, it nevertheless provides more than 60 
percent of that crop in terms of gi-ain harvested (fig. 26) . 
Nearly 90 percent of the corn produced there, as well as 
oats (fig. 30) and other cereals and hay available in 
abundance, are used as feed in the area where grown. Of 



the 50 to 60 million head of swine normally found on 
farms, about two-thirds are in the Corn Belt (fig. 27), 
where commonly, due to the abundance of fat-produc- 
ing corn, the animals are fed to a heavier weight than 
elsewhere. Cattle, particularly fat cattle, are a major 
product of the western Corn Belt, to which in part 
grass-grown animals are imported from the range 
country to be fattened. The over-all density of cattle 
in the Corn Belt, shown in figure 28, is greater than in 
the Dairy Belt, amounting to something like 45 head 
per square mile — fully as high as the population density. 
Poultry and its products are more abundant than in 
most other sections of the country, and sheep are 
numerous in some sections (figs. 31, 32, 29). 

As may be seen in figure 26, corn is not sharply lim- 
ited in its general distribution, but the geographic and 
competitive location factors giving rise to the intensive 
core of the distribution are complex. The Corn Belt 
area appears to be limited on the north by short grow- 
ing season and low temperatures; on the west, by low 
rainfall and high temperatures; on the south, by 
rougher topography, competition with other crops, and 
possibly, to some extent, by high-temperature con- 



Industrial Location and National Resources 



41 



ditions; and on the east, by rougher topography and 
competition." Certain changes have taken place in the 
past decade, including the rapid expansion in use 
of the higher producing hybrid corn, mechanization, 
especially of the corn-picking operation, and a moder- 
ate northern migi-ation of production. Corn is also in- 
volved directly in industrial processing into many prod- 
ucts, including alcohol, industrial chemicals, and foods. 

The soybean, as a commercial crop for industrial 
processing, is largely a product of the Corn Belt. 
The Corn Belt, in its agricultural richness and diversity, 
should be able to support many more people directly 
on substantial levels of nourishment, particularly if its 
cei'eals were used directly as food rather than indirectly 
as meat. Even in those localized sections of the Belt 
where corn growing is most intense, less than 50 percent 
of the acreage is producing corn at any one time, and 
for the Belt as a whole the average is much lower. How- 
ever, a better possibility of expanding corn production, 
at least in terms of acreage, appears to lie in the use of 
imneeded cotton acreage south of the Com Belt. This 
has been a moderate trend in recent years, perhaps 
partly a result of Government agricultural programs. 

The "Corn and Winter Wheat" Belt, located south 
and southeast of the main Corn Belt, is a diverse area 
in which corn, livestock, wheat, and tobacco, are major 
farm activities. Unglaciated topography and residual 
soils cause this diverse agricultural area to stand in 
considerable contrast with the Com Belt, having gen- 
erally smaller fields and farms, as well as a lower per- 
centage of its total area classed as crop land. 

Dairy Areas 

Agriculture in the Lake States and the Northeast, and 
to a moderatel)' lesser degree in the North Pacific re- 
gions, is of general and mixed farming types devoted 
largely to pasture, hay, and ensilage crops. Whether 
milk is sold fresh to village and urban consumers or in 
the form of processed milk, butter, or cheese depends 
more upon location in relation to consuming markets 
than upon stage of development or historical production. 
By nature the land of these areas is not for the most 
part of a quality to be compared with the greater part 
of the Corn Belt; the mantle of glacial till is thinner, 
the soils are partly the acidic podsols but in gi'eater part 
the grey-brown forest soils, in some places stony or 



" v. C. Finch and 0. E. Baker, Oeograpliy of the World's Agriculture, 
Washington, 1917. p. 32. 

J. K. Rose, "Climate and Corn Tield in the Corn Belt," Oeographical 
Review, vol. XXVI, No. 1, January 1936, pp. 88-102. 

Naum Jasny, Competition Among Oraint, Food Research Institute, 
Stanford University. California, 1940. 

E. Huntington, F. E. Williams, and S. Van Valkenburg, Economic and 
Social Qeography, 3. Wiley & Sons, New York, 1033, 614 pages. See 
especially ch. IV. "Climatic Optima of Crops as Illustrated by Corn." 
pp. 52-73 



sandy. Topography in part of the area is rollmg to 
rugged. Nights are cool even in summer, and the gen- 
erally humid climate promotes the growth of grass. In 
the western area the mild winter is a favorable factor. 
Even more significant as a basic factor in the case of 
the Lake States and the Northeast regions are their 
great industrial populations who in recent years have 
learned to use increasingly lai'ge amounts of dairy prod- 
ucts. Parts of the same areas are engaged in intensive 
poultry production. In areas especially favored by 
temperature, fruit farming predominates over general 
farming. There appears to be good evidence that, if 
demands justify, the territory devoted to dairying could 
be expanded rather easily, particularly into parts of the 
Corn Belt and, perhaps more desirably so far as na- 
tional considerations and conservation are concerned, 
into the Cotton Belt. 

Wheat Regions 

Wlieat and, to a lesser extent, other small cereal 
grains, including grain sorghums, have come to be the 
predominant crops in portions of the Northern and 
Southern Great Plains as well as in a smaller area in 
the Pacific Northwest (fig. 33). These areas comprise 
more than 200 million acres, of which less than 90 
million are classed as crop land. In any year, from 
two-fifths to nearly one-half of that crop acreage may 
be sown to wheat, constituting about 60 percent of the 
total United States acreage devoted to wheat. The 
Plains areas are producers of hard wheats, nearly one- 
third of which is of the spring wheat type. 

Judging by maps prepared by the Food Research In- 
stitute,^^ or the wheat crop insurance premium data, 
these areas are not especially favorable climatically to 
wheat production, but they will produce wheat better, 
and sometimes more profitably, than other cultivated 
crops, except perhaps the newer and drought-resistant 
grain sorghums. Competitive uses of the area are graz- 
ing and, in some places, growing of corn, flax, and other 
cereals. In other words, these wheat areas, in part at 
least, tend to occupy the dryer margins of the chief 
agricultural sections of the Nation,'^ and have at times 
expanded into the more strictly grazing area of the West, 
only now and again to be pushed back eastward some- 
what b}- a serious drought." The stability of wheat 
production probably could be and may be increased by 
further advances in the development of drought- and 
rust-resistant species. Additional expansion would 



" M. K. Bennett and Helen C. Farnsworth, "World Wheat Acreages, 
Yield, and Climates," Food Research Institute, Stanford University, 
Wheat Studies, Vol. XIII, No. 6, March 1937. 

" Naum .Tasny. op. cit. 

" C. Warren Thornthwalte, "The Great Plains," In Carter Goodrich 
and others. Migration and Economic Opportunitu, University of Penn- 
sylvania Press. Philadelphia. 1936. 



42 



National Resources Planning Board 




Industrial Location and National Resources 



43 




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44 



National Resources Planning Board 




BASE FIGURES ARE FROM THE BUREAU OF THE CENSUS 



U.S. DEPARTMENT OF AGRICULTURE 



NEG 39979 BUREAU OF AGRICULTURAL ECONOMICS 



Figure 34 



BASE FIGURES ARE FROM THE BUREAU OF THE CENSUS 




U. S. DEPARTMENT OF AGRICULTURE 



NEC 39729 BUREU OF AGRICULTURAL ECONOMICS 



Figure 35 



Indtistrial Location and National Resources 



45 



LAND IN FRUIT ORCHARDS. VINEYARDS. AND PLANTED NUT TREES 

Acreage. 1939 



'^^ 




BASE FIGURES ARE FROM THE BUREAU OF THE CENSUS 



U. S. DEPARTMENT OF AGRICULTURE 



NEG. 42145 BUREAU OF AGRICULTURAL ECONOMICS 



Figure 36 



necessarily be at the expense of grazing in still drier 
areas, or at the expense of livestock and general 
farming witliin the present major area, or at the ex- 
pense of corn and general farming in the more easterly 
areas, as the Corn Belt and Corn and Winter Wheat 
Belt. In any case, -with our production varying sharply 
from year to year in accordance with plantings and 
weather conditions, but generally providing a sizable 
surplus for the now-crowded export market, it seems 
unlikely that expansion will be called for in the pro- 
duction of this bread grain. 

Processing for the most part takes place eastward of 
the point of production, en route to the consuming 
centers of industrial population. 

Truck Garden Areas 

Small areas around major metropolitan agglomera- 
tions and larger areas, mostly near the Atlantic and 
Gulf coasts, and some irrigated sections of the South- 
west, are given over to the intensive commercial pro- 
duction of vegetable crops (figs. 34 and 35). 

Location factors closely related to particular areas 
include light rich soils, long growing season, plenty of 
moisture and climatic conditions favorable to an early 
seasonal start for one or more of the numerous crops. 
An additional factor usually of much importance is 
the comparative nearness of large industrial markets. 



The Imperial Valley of California, with its simshine, 
irrigation water, and mild climate, presents in contrast 
conditions which enable growers there to serve the 
markets of even the eastern seaboard, especially in the 
winter season. 

Subtropical Crop Areas 

Coincident in loc^ition with some of the truck areas 
are the subtropical fruit areas (fig. 36). The Subtropi- 
cal Fruit and Crop Belt divides into a humid type, which 
is almost of mild monsoon climatic type, and a Cali- 
fornia type requiring, generally, irrigation. These areas 
have poured onto the industrial markets, in fresh and 
more recently in processed forms, vast amounts of citrus 
fruits. There has been an upward trend in production, 
but roughly 60 percent of the approximately 80 million 
boxes of oranges come from the California sector, with 
most of the remainder from Florida. Slightly more 
than half of the 40 million boxes of grapefruit come 
from Florida and most of the remainder from Texas. 
Lemons are Californian, and limes Floridian.'* Ap- 
parently the amount which might be produced of these 
fruits is limited more by the market than by nature; 
the Lower Rio Grande and Lower Mississippi Delta 
areas recently have risen to positions of some signifi- 



" The Fruit Situation, U. S. Department of Agriculture. Bureau of 
.Agricultural Economics, January 1941. 



46 



National Resources Planning Board 



cance but not predominance. Otherwise, a variety of 
fruits, vegetables, and truck crops are the secondary 
products of these areas. 

Grazing and Irrigated Crops Region 

The grazing of livestock is the primarj' agri- 
cultural activity on verj' nearly one-half of the area 
of the United States, mostly in the West. The inten- 
sity of usage differs greatly from one part to another 
of the area but on the whole is an extensive rather than 
intensive industry, not nearly so intensive as in the 
Corn Belt, for example, either for animals per square 
mile or for total animals. Of all land grazed in the 
United States, about 11 percent is classed as plowable, 32 
percent as woodland, and 57 percent as open land not 
tillable.^^ On the other hand, smaller areas within this 
larger grazing area of the intermountain region are 
irrigated and farmed intensively, either to provide a 
winter feed base for sheep and cattle grazed on open 
range during the warmer part of the year, or to 
produce such commercial crops as potatoes and sugar 
beets. Possibilities of expanding the food producing 
activities of this region appear to lie in the directions 
of better range management, a very moderate increase 
in the additional reclamation through irrigation, and. 
in some places, the more efficient use of water now 
under priority. 

Fish 

Fishing, in terms of either value of product or men 
employed, is roughly only one-hundredth as important 
as agriculture (table 1). The resources are largely 
peripheral. Fertilizer, oil, shell, and leather obtained 
from marine resources are of some industrial signifi- 
cance. The 3'early catch, excluding that of Alaska, is 
about 31/2 billion pounds (table 5), with a primary 



^^ Agriciiltural Land Requirements and Resources, p. 30. 



value of only $80,000,000 but a wholesale value of 
nearly $200,000,000. More than 4,000 vessels, with a ton- 
nage of about 100,000, are regularly manned by 120,000 
fishermen. Additional thousands are engaged in proc- 
essing the catch. The nature, extent, and exploit ability 
of the fish resources is much more difficult to evaluate 
than are the plant and animal resources of the land, 
not only because of the lack of an adequate census 
but equally because of uncertainty as to what areas 
or portions of the continental shelf may be in the 
future exploited in deep-sea fishing and to what extent 
the exploitation of any given area will be shared with 
others. 

Innumerable rivers, streams, lakes, and ponds pro- 
duce fish and mussels largely on a sport or noncom- 
mercial part-time basis with the product immediately 
utilized. The Lakes States area produces about two- 
thirds of the fisheries products of the interior, largely 
fresh-water fish used fresh or smoked for food, rather 
than shellfish. Most of this catch, valued at about 
$6,000,000, is in the upper Lakes area and has in recent 
years shown a general decline in quantity, particularly 
of the more delectable species, such as sturgeon, white- 
fi.sh, and lake trout. Most of the catch is made overnight 
in gill nets or on set lines tended in power-driven boats. 

The rivers of the interior formerly were productive 
of large amounts of food fish, especially the buffalo, 
the cat, and the carp types. Water pollution and qver- 
fishing have greatly reduced this part of tiie industry. 
It amounts to less than $3,000,000 per year, though em- 
ploying more than twice as many fishermen as the 
Lakes States area. 

New England shore, inshore, and deep-sea fisheries are 
well developed. The deep-sea fisheries employ most 
of the total of 665 boats, with total tonnage in excess 
of 22,500, and the greater part of more than 20,000 
New England fishermen. The product, valued at 
about $18,000,000 in a recent year, consisted of both 
pelagic species (surface feeders) and demersal species 



Table 5. — Fisheries of the United States ami Alaska, 1938 








Fishermen 


Fishing vessels 


Products 




Weight 


Value 


New England states -. _ . _ , 


20,248 
7,549 
15,297 
29,688 
23,635 
6,976 
15,884 
11,007 


665 (22,528) 
409 (7.871) 
341 (7,38S) 
1,115 (13.347) 
1, 345 (40, 578) 
469 (6, 022) 


Pounds 

631, 520, 000 

216. 858, 000 

294, 594, 000 

621,858.000 

I. 525, 885, 000 

81,524,000 

82. 383, 000 

798.823,000 


$18,275,000 (6,261,000) 


Middle Atlantic States . 


8, 249, 000 (4, 422, 000) 


Chesapeake Bav States .. __ ... 


6, 663. 000 (4. 073. 000) 


South Atlantic and Gulf States 


13.074,000 (7.252,000) 


Pacific Coast States 


26, 086. 000 (2, 099, 000) 


Lakes States _._ 

Mississippi River and tributaries! ... . . ._ . _ 


6, 083. 000 (7, 000) 
2, 897, 000 (640, 000) 


Alaska .. 


835 (11,781) 


12,220,000 (159,000) 






Total . 


130, 184 


5,179 (109,515) 


4,253,445,000 


93,547,000 (24,913,000) 







Source: Department of the Interior, Fish and Wildlife Service. 

1 Data for 1931. 

Figures in parenthesis under "Fishing Vessels" indicate tannage thereof; the figures in parenthesis under "Value" are for shellflsh. 



Industrial Location and National Resources 



47 



(bottom feeders). Pelagic species include outstand- 
ingly the mackerel (most valuable of the pelagic 
species in this area), the herring (sold fresh, canned 
as sardines, and pressed for qil), and the men- 
haden (for fertilizer). Since these species are mi- 
grator}', the fishing must follow the schools, and is 
seasonal. Though sailing vessels are still used, the 
operations are increasingly carried on with engine 
power. 

Demersal species, on the other hand, migrate less 
freely, are exploited more on a year-round basis, and 
are caught mostly on lines or by trawl net on bottoms 
of not more than 200 fathoms depth. Cod, haddock, 
and halibut are the chief species. New England fish- 
ermen work mostly the Georges, Browns, and Sable 
Banks off Cape Cod, and to a much lesser extent the 
larger and more northerly Grand Banks. Fishermen 
from the United States take only about 10 percent 
of the cod caught off the east coast of North America. 
Of the total haddock taken in a recent year, amounting 
to 175,000,000 pounds, approximately 126,000,000 
pounds wei-e taken by United States fishermen, 102,- 
000.000 pounds from the banks and 24,000,000 from 
inshore fisheries. 

The shellfish of New England accounted for one- 
third the total value of the fisheries product in a re- 
cent 3'ear. The main components are the lobster, clam, 
and oyster. The oj'ster take for the area amounted 
to 11,400,000 pounds for one recent year. The pi'imary 
fish markets are Boston and Gloucester, Mass., and 
Portland, Maine, where the fish are sold fresh, for 
immediate consumption in nearby dense centers of 
population, or are processed for shipping inland. 

Tlie fisheries of the ]\Iiddle Atlantic, Chesapeake 
Bay, South Atlantic, and Gulf States are largely con- 
fined to the shore or near-shore areas. The grand total 
of fisheries of this long coast outranks the better- 
known New England industry, having two and one- 
half times as many men employed, three times as many 
fishing vessels, and a product, in terms of poundage and 
value, nearly twice as large. The menhaden species 
(used for oil and fertilizer) and mackerel are especially 
important. In terms of value, half the catch is shellfish, 
with the oyster, shrimp, and crab occupying the more 
important positions. The oyster hanest in a recent year 
amounted to 140,000,000 pounds and, though more is 
heard of the Chesapeake Bay oyster, the industr}' was 
rather well distributed over all major sectors of those 
coasts. These shellfish products are marketed inland 
as well as coastwise and several species lead to im- 
portant processing and canning industries. 

In terms of poundage the Pacific Coast States are 
the most productive section, witli California account- 



Tahle li. — Fish catch by States, l'J.18 



State 



.\iabama 

Arkansas.- 

California 

Connecticut 

Delaware 

Florida... 

Georgia 

Illinois 

Indians 

Iowa 

Kansas.. 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts. 

Michigan 

Minnesota 

Mississippi 

Missouri 



Weight 


Value 


(thou- 


(thou- 


sands ol 


sands ol 


pounds) 


dollars) 


12,739 


482 


16,733 


411 


1,294,526 


17,056 


11,838 


1,420 


17,507 


144 


241,443 


4,988 


19,835 


381 


15, 418 


524 


8,481 


223 


7,778 


302 


455 


17 


1,622 


61 


125, 096 


4,386 


67,207 


2,521 


57,263 


2,260 


537,850 


13, 169 


28,838 


2,265 


11,701 


429 


16,910 


726 


928 


77 



State 



Nebraska 

New Hampshire. 

New Jersey 

New York 

North CaroUna.-, 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina... 

South Dakota 

Tennessee. 

Texas.-- 

Virginia. 

Washington. 

Wisconsin 

Alaska -. 



Total 4,253,445 



Weight 
(thou- 
sands of 
pounds) 



Value 
(thou- 
sands of 
dollars) 



145 

796 

108,095 

93,593 

198, 766 

22,225 

40 

71,728 

2,713 

13,829 

7,911 

114 

3,435 

24,983 

237, 331 

159,631 

18,120 

798,823 



16 

109 

2,908 

5,402 

1,950 

1,510 

4 

2,400 

272 

1,056 

274 

11 

104 

1,042 

4.403 

6,632 

1,393 

12,220 



93, 547 



The 1938 catch by chief varieties (thonsands of pounds) was: Cod, 140,.M5; haddock, 
169,044; herring (sea), 202,829; mackerel, 123,137; menhaden, 485,474; pilchard or 
sardine, 1,110,401; salmon (blucbaek, red, or sockeye), 245,094; salmon (humpback 
or pink), 235,976; shrimp, 143,101. 

Source: Depaitment of the Interior, Fish and Wildlife Service. 

ing for more than one-third of the poundage catch for 
all of our fisheries, excluding Alaska. The more 
southerly west coast area provides several pelagic 
mackerellike species, especially the tuna, bnnito, and 
yellowtail, mostly taken with rod and line, and proc- 
essed for canning. Also belonging to the west coast 
area is the sardine, anchovy, and pilchard, which serve 
not only as human food (canned, salted, fresh) but 
also for oil and fertilizer. The chief demersal species 
taken is the halibut, mostly on hand lines, and in the 
more northerly sections above California. This prod- 
uct is iced and'shipped inland for human consumption. 
As has been indicated earlier, full information on fish- 
eries resources and reserves is not available. Enough 
is available, liowever, to indicate a serious decline, par- 
ticularly in fresh-water fisli and certain shore and in- 
shore salt-water si^ecies. The conservation of fresh- 
water fisheries has been attempted by laws to control 
stream pollution, laws governing the methods and time 
of fishing, and the size and the number of fish legally 
allowed.'" 

Of the 4.3 billion jiounds catch of commercial fish 
m 1937 (Alaska included) 2.1 billion pounds are classed 
as nonfood industrial material having a byproduct 
value of 37 million dollars. Derived therefrom in that 
year were nearly 300 million pounds of marine animal 
oils valued at 1(5 million dollars, shell products worth 
11 million dollars, meal and scrap at 7 million dollars, 
and the remainder mostly credited to glue. The oils 
were largely used for soap (64 percent); additional 
significant uses were for paints (9 percent), shortening 



" See Report of the Acting Commissioner of Fisheries, Bureau of 
Fisheries, f S Department of the Interior. Washington, 1040. 



48 



National Resources Planning Board 



(7 percent), linoleum (6 percent), and miscellaneous 
(14 percent)." 

That our fishing industry does not supply all of 
our fish needs is indicated by imports for 1940 valued 
in excess of 30 million dollars, with fresh-water fish 
and cod-liver oil as two of the more important items. 
Efforts are being made to provide substitutes from the 
shark, tuna, and sardine to meet the cod-liver oil 
deficit." In the same year we exported nearly 18 
million dollars of fish and fish products, predominantly 
canned salmon.^® 

Fibers, Furs, and Hides 

To a much greater degree than is true of food re- 
sources, the United States is a deficit area for fibers, 
furs, and hides, with cotton a major exception. How- 
ever, industrial raw materials of these sorts, having 
a market value to the producer of close to 1 billion 
dollars, were produced in the United States in 1940. 
Production is concentrated in a few types and areas, 
and reserve resources are also concentrated largely in 
the same areas. 

Cotton 

In terms of production volume and value, production 
facilities, extent of use, and related social and economic 
problems, cotton is our most significant industrial fiber 
resource. The production facilities for this fiber are 
localized in the so-called Cotton Belt of the Southern 
States (fig. 37). There, 1,640,025 f arms =« are so pre- 
dominantly occupied in cotton production as to be 
classified as cotton farms; that is, 40 or more percent 
of the total production of those farms in terms of 
value is cotton (lint and seed). In all. 2,000,000 farms 
in the South and Southwest, on wliich live 10,000,000 
persons, produce some cotton.^^ This figure includes 
most of the Southern farms found outside the 
mountainous areas and very nearly one-third of the 
farms of the Nation. Employed thereon are a ma- 
jority of the rural negro families, primarily engaged 
in the production or initial processing (ginning) and 
handling to market of this most important fiber. Mar- 
keting and processing of cotton supports 500,000 per- 



" R. T. Whiteleather, "The Significance of Byproducts to the Fishery 
Industry." Fishery Market News, Vol. 1, No. 8, August 1P39, pp. 3-5. 

"Industrial Bulletin, No. 168, April 1941, Arthur D. little, Inc., 
Cambridge, Mass. 

"Monthly Summary of Foreign Commerce of the United States, 
December 1940, pp. 6 and 21. 

^Fifteenth Census of the United States: 13S0, Agriculture, vol. Ill, 
"Type of Farm." 

^ I. W. Duggan and Paul W. Chapman, Round the World With Cotton, 
D. S. Department of Agriculture, Agricultural Adjustment Administra- 
tion, Washington, 1941, p. 3. 



sons, and cotton textile manufacturing furnishes 
a livelihood for an additional 3,000,000." 

The Cotton Belt includes approximately 240,000,000 
acres ^' or more than one-tenth the area of the United 
States; of that area, 220,000,000 acres are classed as 
agricultural and a little less than three-fifths, or 152,- 
600,000 acres, is actually included in farms. Of the 
farm acreage, .74,400,000 are classed as croplands. 
Cotton farms, a small number of which, under the 
Census definition, lie beyond the delimited margin of 
the Cotton Belt, included, as of 1930, 118,500,000 
acres.^* It is indicated that approximately 25,073,000 
acres were planted to cotton in 1940, and of that, 24,- 
078,000 acres -^ were actually harvested. Texas alone 
accounted for one-third of the acreage and nearly one- 
third of the j'ield. In short, only approximately one- 
tenth of the gross area of the Cotton Belt is now used 
to produce cotton and only one-third of the cropland 
thereof was in 1940 a producer of fiber for industry, 
domestic or foreign. 

This present low acreage figure should be compared 
with the 33,166,000 acres of harvested cotton as an 
average for the period 1929-38, inclusive, the latter 
figure not including an average of 94,000 acres for 
the southern California area. Production for the year 
1940 totaled 12,686,000 bales of lint (478 pounds per 
bale), valued at $573,400,000=^ cash to the farmer. 
This crop, while somewhat larger than that of the 
previous year, is more properly to be compared with 
the 13,547,000 bales average yield for the period 
1929-38. The large crop is being produced on a con- 
siderably smaller acreage. The average yield per acre 
for 1940 was 252.4 pounds and the average yield since 
1936 has been well above 200 pounds whereas the aver- 
age for the 1929-38 period was 198 pounds. The now 
generally higher levels of yield are only partly cred- 
itable to weather factors; heavier fertilization, better 
selection and preparation of the land, and better care of 
the crop are apparently significant contributory factors. 

The Cotton Belt is bounded, approximately, on the 
dry western margin by the mean annual precipitation 
isopleth of 22 inches and on the north by mean summer 
temperature of 77° F. and an average frostless season 
of 200 days." Thus the gross area appears to be limited 
unless new species are developed for new areas; but, 



= Ibid. 

» Agricultural Land Requirements and Resources, sec. IV, p. 30, table 
XXVI. 

" Fifteenth Census of the United States, loc. cit. 

* General Crop Report, V. S. Department of Agriculture, Washington. 
December 1940, p. 81. 

" Preliminary figure from Cash Farm Income and Oovemment Pay- 
ments in 19i0, D. S. Department of Agriculture. Bureau of Agricultural 
Economics, February 19, 1941, p. 6. 

" V. C. Finch and O. B. Baker, op. cit., p. 53. 



Industrial Location and National Resources 



49 






COTTON PRODUCTION, 1939 




BASE FIGURES ARE FROM THE BUREAU OF THE CENSUS 



U. S DEPARTMENT OF AGRICULTURE 



NEC. 39471 BUREAU OF AGRICULTURAL ECONOMICS 



FiGtIEE 37 



apparently, cotton production could be substantially ex- 
panded on acreage in the Cotton Belt, especially since 
parts of the acreage formerly devoted to cotton has been 
recently devoted to legumes and pasture, a practice that 
should improve the soil for cotton production. It should 
be noted that in one year during the 1929-38 period the 
harvested acreage of cotton stood at 43,232,000,-^ a figure 
which would allow an 80-percent increase in the 1940 
harvested acreage. 

An important byproduct of cotton-lint production is 
cottonseed, which is commonly estimated by allowing 
65 pounds of seed for each 35 poimds of lint; cotton- 
seed production in 1940 is estimated at 5,645,000 tons 
and is valued at $86,434,000.=" The gi-eater part of 
the cottonseed crop was crushed for oil, resulting in 
1,272,733,000 pounds ^° of cottonseed oil, a considerable 
portion of which is edible oil. 



"M. R. Cooper, Statistics on Cotton and Related Data, V. S. De- 
partment of Agriculture, Bureau of Agricultural Economics, Washington 
1939, p. 1. 

"Preliminary figure from Cash Farm Income and Oovemment Pav- 
ments in ISjO, U. S. Department of Agriculture, Bureau of Agricultural 
Economics, February 19, 1941, p. 6. 

» The Fats and Oils Situation, U. S. Department of Agriculture, 
Bureau of Agricultural Economics, February 1941, p. 10. 



In considering potential industrial supplies of cot- 
ton lint, and resources whereby future requirements 
may be met, it is significant that our productive ca- 
pacity is basically geared to suppl)'ing not only a 
large domestic market but also a large foreign market. 
That is, the problem of the present and near future 
is not how to get enough cotton but how to use effec- 
tively unused surplus supplies, unused acres formerly 
devoted to cotton, and unemployed or ineffectively em- 
ployed persons formerly employed in cotton produc- 
tion.^^ Wliereas our exports during the crop j-ear 
1940 (beginning September 1) are estimated at not 
more than 1,000,000 bales and domestic consumption at 
at least 9,000,000 bales and possibly more, the period 
1929-38 is indicated as having yearlj- exports averag- 
ing 6,325,000 bales and domestic consumption averaging 
5,877,000 bales."- The carry-over of United States cot- 
ton at the first of the 1940 season was 12,600,000 bales— 
a full year's crop. Thus it would appear that supplies 



" See O. C. Stine, "Future of Cotton in the South," Journal of Farm 
Economics, vol. XXIII, No. 1, February 1941, pp. 112-120. 
pp. 112-120. 

" The Cotton Situation, V. S. Department of Agriculture, B<jrcau of 
Agricultural Economics, Washington, February 1941, p. 14. 



50 



National Resources Planning Board 



are iiorinally abundantly available to meet any prob- 
able requirements in the United States even without 
expanding acreage. Liiports of cotton lint into the 
United States have been largely to furnish types not 
available domestically in sufficient amounts and in 
1938-39 stood at 157,000 bales." The use of cotton 
linters and the possible use of cotton lint as a source 
of cellulose will be discussed briefly in a later section. 

Other Vegetable Fibers 

In contrast with the surfeit of cotton fiber available, 
the United States usually is a deficit area in respect to 
other vegetable fibers. The 3,228,000 acres devoted to 
flax in 1940 were for linseed production, not for linen 
fiber. The resulting byproduct flax plant fiber, pro- 
duced under conditions of comparatively dry climate 
and with entire lack of emphasis on fiber quality, is 
coarse and brittle, suited at best only for spinning into 
coarse twine or for use, as some other straws are used, 
in the manufacture of commercial strawboards. Mean- 
while, during the same j'ear, 1940, the imports of flax, 
unmanufactured and manufactured, plus minor but 
unspecified amounts of hemp and ramie, were valued 
at $22,139,000.='* Of that amount the unmanufactured 
flax was valued at $1,175,000. The production of flax 
for fiber has been given some recent attention in the 
more humid portions of the country, particularly with 
reference to substituting for cotton lands in the 
South.^^ If efficient machinery can be developed for 
separating the usable fiber, thus eliminating the costly 
hand labor now required, eastern and southern sections 
may raise enough flax to replace a considerable part 
of the imports. Apparently, a significant part of the 
irrigated acreage of Peru formerly devoted to long- 
staple cotton is being diverted to flax, and that fiber 
has already been contracted for in the United States 
of America.^'' 

Vegetable fibers other than cotton and flax, mostly 
unmanufactured, were imported amounting to $24,- 
817,000 in 1940. Chief among these were sisal, or 
henequin, which is used largely as the fiber of twine 
for grain binding. Imports, mostly from Yucatan and 
the East Indies, regularly amounting to more than 100,- 



" M. R. Cooper, op. cit.. p. 23A. 

" Monthly Summary of Foreilln Commerce of the United Slatet, 
December 1940, p. 24. 

^ "Flax May Be Cotton Kingdom's Ally." Business Week, October 12, 
1940, pp. 54-5.-1. 

'•A cable under date of March 26, 1941, from Lima, Peru, to the 
New York Times, reports that the National Research Council's con- 
ducted tour found that 700 acres were planted experimentally to flax 
in 1939, 2,800 in 1940, and 22.000 acres the present year. This latter 
figure should be compared with the 140,000 acres normally devoted to 
cotton, the crop now being displaced. The cable further reports that 
not only has the 1941 crop been sold at 42 cents per pound for flax fiber 
and 20 cents per pound for the shorter tow, but that the 1942 crop 
has been purchased under forward contract. 



000 tons, in 1940 were valued at nearly half of the 
above total. Manila, or abaca, constitutes a strategic 
defense material because of its resistance to salt water, 
floating ability, strength, and elasticity. Imports, 
largely from the Philippines, were valued in 1940 at 
$5,497,000. Jute and jute butts from India amounting 
to 38,000 tons were imported in 1938 ; " imports of 
this material, raw and manufactured, in 1940 were val- 
ued at $57,234,000.^' Most jute is used to manufacture 
the coarse fabric called burlap, of which 50,000,000 
yards were used per month. Hemp was once produced 
for fiber in our Midwest and recently has been slightly 
revived there, particularly in southeastern Wisconsin.^* 
Kapok, a tree cotton from southern Asia and the East 
Indies, is classed as a critical material in defense and 
is otherwise of moderate importance. Though the 
United States does not duplicate within its borders the 
natural and economic conditions required for the com- 
mercial production of all of these fibers, such fibers, 
natural or artificial, as we do produce may in some 
cases be substituted. 

Wool 

At present we produce only about one-half of our 
wool requirements and are not likely to expand greatly 
the present production. Something like 48,500,000 
sheep in 1940 contributed 388 million pounds of wool, 
valued at $110,000,000 — an average of 8 pounds jjer 
fleece and 28.4 cents per pound to the farmer.*" In 
addition, something like 62,000,000 pounds of pulled 
wool were produced. The distribution of production 
is similar to that shown for sheep in figure 29, a dis- 
tribution which is highly spotted, witli two-thirds of 
the total in the western half of the country. Expansion 
of production is unlikely inasmuch as the more arid 
lands of the western half of the country, where range 
shee^D are little subject to disease and may be raised 
more easily than most domestic animals, are already 
occupied ; the eastern concentrations are on farm hold- 
ings and must compete with other domestic animals and 
crops. 

Domestic production is not sufficient to supply the 
domestic demand for certain types of wool. Imports 
of unmanufactured wool into the United States in 
1940 were 357,193,262 pounds, valued at $83,026,891, 
with Argentina the leading source. In the rather 
unusual year for which figures are shown above, nearly 
two-thirds of the imports were of apparel wools, largely 



" A./rieiiltiiral Ulatistics, 1941, p. 497. 

"Monthly Summary of Foreign Commerce of the United States, 
December 1940. p. 25 

=* "Hemp a Money Maker For Wisconsin Farmers," The Prairie Farmer, 
October 5, 1940, p. 5. 

" The Wool Situation. U. S. Department of Agriculture, Bureau of 
Agricultural Economics, March 1941, p. 12, table I. 



Itidustrial Location and National Resources 



51 



of fine quality, with the remainder confined mostly to 
carpet wools from many soui'ces.''^ Wool manufac- 
tures imported in 1940 were valued at $18,733,636 and 
were allocated about one-half to fabrics, one-fifth to 
wearing apparel and the remainder to carpets and 
rugs.*- Exports of wool manufactures of several types 
during 1940 were valued at nearly $6,000,000, whereas 
exported semimanufactured wool material, mostly rags, 
noils, and waste, had a value of $7,r)00,000 for 31,500,- 
000 pounds." 

Mohair and Related Materials 

Approximately 4 million angora goats in the United 
States, sheared twice yearly of their mohair fleece, 
produce neai'ly 19 million pounds of this long elastic 
fiber. Production is more than 80 percent from Texas, 
mostly in the rough, dry Edwards Plateau area. Pro- 
duction elsewhere in the United States is in areas of 
somewhat the same terrain, or where the goats are used 
for their brush-clearing qualities, as in the Ozarks.^'' 
This amount apparently very nearly satisfied industrial 
needs, for whereas 250,000 pounds of mohair were im- 
ported, manufactured mohair of total weight 166,000 
pounds was exported. At the same time aljjaca, cash- 
mere, and camel fibers, which to some extent are com- 
l>etitors of mohair, were imported in excess of 3 million 
pounds and valued at nearly $1,500,000.*= 

Hair, some of it human hair, but predominantly 
horse hair, was imported in 1940 in amounts having a 
value of more than $4,600,000.'"^ Though our hatters 
and felters have imported j'early as much as 8 million 
pounds of rabbit fur for felting, rapid progress is 
being made in the substitution of chemicals for part 
of the hair product.*" Nearly 10 million pounds of 
feathers valued at about $3,000,000, were imjiorted in 
1940; ** the amount of domestic production is unknown. 

Furs 

The annual market value of raw pelts in the United 
States is roughly $60,000,000, of which about one-sixth 
is produced by commercial fur farms. Practically 
ever)' farm, forest, and wood lot is a potential source 
of fur. Though the paucity of data does not allow 



"Ihid.. table III. 

"Munthlj/ Summary of the Foreign Commerce nf the United States, 
December 1940. p. 25. 

'^Ibid., p. 10. 

"Stalistics from Agricultural Statistics, 1940, V. S. Department of 
.\t;riciiUure, Washington. 1940, p. 411. 

^ ifonthly Summiiry of the Foreign Commerce of the United States, 
December 1940, p. 25. 

"HHd. 

""Hats Made With Milk." Business Week, October 12, 1940, p. 55. 

'''Monthly Summary of the Foreign Commerce of the United States, 
December 1940, p. 22. 



an estimate of the general over-all significance of the 
fur catch to States or the country at large, it has re- 
cently been declared: "Louisiana ranks as the leading 
fur-producing State in the country. Tliere are approxi- 
mately 12,000 trappers in Louisiana alone. Their ac- 
tivities give employment to some 30,000 persons." ** 
Furs move largely as i-aw skins to a few central markets, 
of which St. Louis is by far the largest. After the 
auction sales there, and possibly some initial processing, 
the furs move to the manufacturing markets, largely in 
and near New York City. 

Wildlife has been unable to meet the requirements 
of the fur-manufacturing industrj' in the face of over- 
trapping, natural depletion by fire, flood, drought, 
disease, and encroaching civilization, together with 
greatly increased middle-class consumption of fur 
products. This inability is indicated by the rapid 
development of fur farming. Tliat industry, which is 
estimated as having an investment value in excess of 
$50,000,000 with an annual product of one-fifth of that 
amoimt, is still growing rapidly.^" The Census of Agri- 
culture reports 2,750 farms keeping silver fox in cap- 
tivity; 2,655 such farms rei)orted 103,301 females on 
hand as of April 1940; 2.444 farms reported 261.070 
pelts taken in 1939. Mink were kept by 2,836 farms 
of which 2,754 reported 161,457 females on hand in April 
1940. and 2,027 farms reported 291,324 pelts taken in 
1939. Further evidence that domestic demand exceeds 
domestic supply is presented in tables 7 and 8. Imports 
of I'aw fur material, in which rabbit and lamb were 
especially large items, were nearly eight times as large 
in value as the exports, mostly manufactured items. 

Hides and Skins 

This industrial raw material, from which is processed 
leather and its industrial derivatives, is the most sig- 
nificant byproduct of animal slaughter — predomi- 
nantly of cattle. Though the production pattern 
corresponds roughly to the distribution patterns of 
the several animal types mostly used (figs. 28 and 29), 
the industiy is predominantly located between the 
point of production and the meat-consuming industrial 
areas. Inasmuch as this industrial resource is a by- 
product, worth normally not more than one-tenth of 
the total value of the animal, hides are available only 
because animals are produced for other reasons. We 
can discuss available resources in terms of normal 



"> National Resources Planning Board. 'Treliminary Statement, Re- 
gional Development Plan. South Central Region," Development of 
Resources and Stabilisation of Employment in the United Statet, 
Washington. .Tanuary 1941, p. 206. 

* "The Silver Fox," Fortune, vol. XIV, No. 6. Decemb.^r, 1936, pp. 
125-127. More pxact data will be available from the 1940 census, 
the first to inclmlc fur farming. 



52 

slaughter, and potential resources in terms of existing 
domestic animals of the types providing desired hides 
and their rate of reproduction. 

As of January 1941 nearly 200,000,000 animals on 
our farms were potential sources of hides of greater 
or lesser worth.^^ Of that number nearly 72,000,000 
were cattle, 56,000,000 were sheep or lambs, and the 
remainder consisted of horses, mules, and swine. It is 
estimated for a recent year that the slaughter of hogs 
was 66 million, of sheep and lambs nearly 22 million, 
and of cattle and calves, about 23 million.^- Thus the 
ratio between number slaughtered during the year, 
and year-end stocks on farms, is approximately 1 to 1 
in the case of swine, 1 to 214 for sheep and lambs, and 
1 to 3 plus for cattle and calves. This is a crude way 
of saying that our existing reserves in the case of 
cattle are at best only a normal 3-year supply, and of 



National Resources Planning Board 
Table 8. — Exports of domestic fur merchandise, hy articles, 19^0 



" Crops and Markets, vol. 18, No. 2. February 1941, p. 25. 
K Agricultural Statistics, 1940, pp. 359, 375, and 400. 



Table 7. — Imports of fur merchandise for coiisumption, by 
articles, lOJfO 





Quantity 

(numbers 

except as 

noted) 


Value 






$79,811,240 










73, 661, 564 






Badger 


42, 301 

114,791 

7,235 

■ 24,641,429 

859, 047 

514, 309 

1,331,156 

152, 812 

7,541,002 

709,458 

11.721,069 

8.39, 981 

141. 170 

1, 032. 210 

244.974 

1,976.829 

155. 780 

890, 541 

36,233 

103. 260 

77, 399 

4,105 

179,971 

4,229,773 

2, 275, 353 

92. 455 

309, 608 


69 546 




1,936,112 

39. 694 

11.664,670 

693,228 

960, 087 

4. 800. 381 

219, 543 

1,463,137 

1 290 861 


Caracul 




Ermine _ _ 


Fitch.... - 


Fox except silver... 


Guanaquito.. 


Hare 

KolinskL 


Lamb, kid, sheep, and goat skin furs. 




Marmot.. .. 


1 304 103 


Marten. .. 


2. 049, 294 

4,744,403 

13 583 


Mink.... 


Mole 




2,070,044 
398,312 
393, 163 
217 679 


Nutria. 




otter 






Raccoon. _ . . 


140 990 


Sable. 


324 942 


Skunk 


245,800 
2.015,072 
1,948,587 

409, 135 
1, 306, 465 

277, 733 




WeaseL 


Wolf. 


Jackal, leopard, lynx, ocelot, and wildcat 

All other. 






Fur skins, dressed ' (including raw silver fox) . 




2 336 090 








Coney and rabbit 


26, 433 
214.461 

42,530 
103, 187 


7,227 

212, 931 

13,331 

488 497 


Dog and goat 

Hare 

Caracul, lamb, and sheep 


other dressed furs 


211, 663 


Silver fox, dressed or raw. 


76,857 


1, 402. 441 




Fur cut for hatters' use '... 


»9,846 


11 464 


Plates, mats, etc. ' 


3, 609. 630 


Hats, caps, and bonnets of fur or of fur felt: 
For men and boys >... 


52, 111 
12,268 


109, 487 
17, 483 


For women and girls '. 


other manufactures > 


65, 522 









Number 


Value 


Furs and manufactures 




$11 411 545 








Undressed furs: 

Civet cat- 


80,717 

2,032 

86,770 

39. 722 

2,175.057 

6,345,246 

406,322 

410, 867 

2,367,458 

79, 652 

1,313,711 

1,710 
9,396 
1,537 
308, 796 
7,328 


35,146 


Fox: 

Silver and black. 


30. 914 


Red 


320, 752 
114 817 


Other 


Muskrat, northern 


2 412 253 


Muskrat, southern 


3, 389, 337 
581 939 




Skunk 


415 608 


Opossum . 


80.5 766 


Mink 


456 103 


Other undressed furs . . 


1 312 001 


Dressed or dyed: 

Fox, silver and black . . . 


34. 675 


Muskrat .... 


12 435 




33 745 




676. 149 


Fur wearing apparel (except fur-felt hats) 


161 547 




455, 315 


Other fur manufactures 




163,053 









Soukce; Monthly Summary of the Foreign Commerce of the United States, De- 
cember 1940. Corrected to January 31, 1941, p. 7. 

the others less. Horses and mules, of course, are used 
as workstock, and the hide when taken at all is likely 
to be from an animal 10 or more years of age. 

The meat-packing industry, which accounts for the 
greater part of the slaughter of cattle, hogs, and sheep, 
reports for 1937 that the total production, through 
those channels, of cattle and calf hides amounted to 
707,787,000 pounds, valued at $97,066,000." Of those 
totals, calf skins represented 11 percent of the poundage 
and 16 percent of the value. The report on sheep in- 
dicated 14.932,000 sheep and lamb pelts valued at 
$26,074,000 plus 31,127,000 pounds of pickled sheep 
and lamb skins valued at $6,570,000. Other hides and 
skins, excepting furs, were comparatively insignificant 
and valued at only $180,000. 

In spite of this seemingly large supply, the records 
reveal that the supply falls well short of the demand. 
During 1940, imports of raw hides and skins, except- 
ing furs, amounted to more than 362 million pounds 
valued in excess lof $50,000,000. Wet salted cattle 
hides and dry or dry salted goat and kid skins ac- 
counted for more than $30,000,000 "■* of that total. In 
addition to these raw materials, leather and leather 
manufactures to a value of more than $9,000,000 were 
imported. On the other hand, all raw hides and skins 
(excepting furs) exported, together with exports of 
leather and leather manufactures from the United 
States in that year amounted to only approximately 
$25,000,000. 

Lumber and Other Wood Products 

Lumber for homes and farmsteads, timbers for 
mines, ties for railroads, fuel for heating, pulp for 



' Duty free. 



! Dutiable 



' Pounds. 



SonBCE: Monthly Summary of the Foreign Commerce o] the United States, 
December 1940. Corrected to January 31, 1941, p. 22. 



"•Statistical Abstract of the United States, 1939, p. 665. 
"Monthly Summary of the Foreign Commerce of the United States, 
December 1940, pp. 6, 7, 21, and 22. 



Industrial Location and National Resources 



53 



newspapers and magazines, and viscose for rayon are 
derived from our forest i-esources. More than 2,000,000 
men are dependent for employment on the forests, as 
itemized in table 9." Inasmuch as most forest prod- 
ucts are bulky in relation to value, it may reasonably 
be expected that the pattern of primary processing will 
closely resemble the pattern of harvest of forest re- 
sources. Generally, the resource pattern has been a 
higlily favorable one. Not only have the more populous 
and industrialized areas during periods of rapid de- 
velopment had the advantage of propinquity to the 
supply of lumber, pulp, and firewood, but such products 
as were available for export (naval stores, lumber, 
ships) were relatively near the ocean transportation. 
But the present pattern of stand is hardly so favorable 
as that of even a few decades ago, and some trends that 
may be discerned are not wholly reassuring. 

Forest Land Resource Patterns 

Unlike the basic pattern of agricultural food re- 
sources, which are ubiquitous but nevertheless intensi- 
fied toward the interior of the country, the outstanding 
feature of our forest land resources is that they occupy 
predominantly the outer portions of our country. (See 
fig. 38, and table 10.) The 21 States which touch the 
oceans or the Gulf contain only 36.2 percent of the area 
of the United States, but include 49.3 percent of the 
forest land (table 10). To include with this group all 
the States which touch Canada would change the ratio 
only slightly. This marginal position of our forest 
land was perhaps even more a predominant characteris- 
tic of the pattern prior to the time when the eastern and 
southern stands were largely cut. The peripheral 
pattern is partially accounted for by the climate of the 
midland plains area, which is apparently more favor- 
able to grass than to trees. The high fertility of the 
soil of much of the wooded portion of the eastern in- 
terior plains stimulated the early clearing of forest so 
that crops might be grown ; whereas the rugged moun- 
tainous areas nearer the margins of the continent were 
not only forest-covered originally but were also less 
likely to be denuded for agricultural use. 

As a measure of forest resources, the total forest area, 
or even the area classified as commercial forest land, 
is a very rough index. For most industrial purposes 
information as to millions of board-feet of saw-timber 
as well as a breakdown into hardwood, softwood, par- 
ticular species, rate of cut, rate of total depletion, and 
rate of restocking may be more useful. 



Table 9. — Employment dependent on forests 



" That tbe total from table 9 is a minimum estimate Is suggested by 
comparison with another estimate, of approximately 3.75 million man- 
years directly and indirectly employed in 1936. 



Manutacturing industry > 



Rayon and allied products * _ 

Billiard and pool tables, bowling alleys, etc 

Boxes, cigar. _ 

Boxes, wooden, except cigar,- 

Caskets, coffins, etc __ _,_ 

Cooperage 

Excelsior 

Furniture, including store fixture 

Matches 

Lumber and lumber products not elsewhere clas- 
sified __ 

Mirror and picture frames 

Planing mill products __ 

Synthetic resins, etc 

Turpentine and rosin 

Window and door screens.. 

Wood preserving 

Wood turned and shaped, etc.. 

Pulp, wood, and other fiber - _ 

Paper 

Converted paper products 

Wood distillation and charcoal _ 



Total, manufacturing industries. 



193S 



Proprie- 
tors and 

firm 
members 



8 

37 

279 

227 

150 

41 

1,481 

2 

5,413 

91 

1,411 

28 

938 

86 

6 

445 

1 

8 

552 

7 



Salaried 
person- 
nel 



2,741 

60 

192 

2,023 

2,347 

760 

77 

16,393 

420 

13, 612 

822 

9,078 

1,690 

1,104 

458 

848 

2,308 

2,071 

11,689 

17, 432 

606 



Wage 
earners 



38,418 

314 

3,176 

23,061 

13, 779 

9,879 

831 

130, 781 

6,075 

255.230 

2,677 

48,297 

12. 749 

27,248 

1,873 

8,986 

21.522 

23,627 

103,344 

108,694 

3,808 



940,830 



Distribution: 

Wholc-ale lumber.. 
Wholesale paper. . . 
Retalllumber 



Total, distribution industries.. 



Proprie- 
tors and 

firm 
members 



1.818 

1,659 

10,798 



Salaried 
person- 
nel and 
wage 
earners 



41. 482 
32, 491 
90,256 



178,504 



Fabrication: 

Cabinet makers.. 
Carpenters. 



Total, fabrication industries.. 



Miscellaneous: 

Foresters and forest rangers. State and Federal (1938 estimate) . 

Pattern and model makers (1930) .-- 

Trade associations, inspectors, etc. (estimate) 

Railroad transportation (estimate) 



Total, miscellaneous employment. 

Orand total, employment dependent on forests. 



1930 



57,897 
929,426 



987.323 



9,954 
29,750 

5.000 
29,900 



74,604 



2, 181, 261 



I For more complete industry description see the Censut of Manufactures, 19S5. 

' It has been estimated that the rayon industry depends upon the forests for 76 
percent of its raw material. The figures given represent 76 percent of the employment 
shown in the Census of Manufactures. 

Source: Adapted from Forest Lands of the United States, Hearings before the Joint 
Committee on Forestry, 76th Cong., 3rd sess., on S. Con. Res. 31 (76th Cong.) 
and H. Con. Res. 11 and 23. (76th Cong.), concurrent resolutions to establish a Joint 
Committee on Forestry, part 8, General Hearings, Washington, D. C, January 16 
and 20 and February 16, 1940. p. 1751. 

Nearly one-third of the total area of the United 
States is forest land. Approximately one-fourth of 
the area of the United States is commercial forest land. 
Of the 844,510,000 acres =« of total area not included in 
farms more than one-half, or 444,683,000 acres, are in 
forest and nearly 73 percent of this nonfarm forest 
area is classed as commercial. Three-fourths of the 



" Sixteenth Oen»ua of the United States: BfO. 



54 



National Resources Planning Board 




WESTERN 
FOREST TYPES 
^1 Spruce -fir 

J Pacific Douglasfir 
\ Sugar pine- 
Ponderosa pine 
LUZj Redwood 
t' ■'-'1 Western larch- 
western white pine 
I" ■ 1 Lodgepole pine 



t -"■■ • -.1 Ponderosa 
pine 

F-'-"-1 Pinon-Juniper 
Iv.'/ \ Chaparral 



EASTERN 
FOREST TYPES 

Spruce-fir (with aOmix- 
ture of hardwoods) 
tillj Birch-beech-maple- 

hemlock forest 

E33 White, red and jack 

pine 
I 1 Oak-hickory 

Oak-chestnot-yellow poplar 
I. ' ''i Oak-pine 
tII3 River bottom hardwoods 

and cypress 
I 1 Longleaf- loblolly-slash pine 



FiGTjKE 38.— Principal Forest Tyi^es of the United States 



185,500,000 acres of farm woodland is also classed as 
commercial. (See table 11.) This would seem to be a 
fact of some significance not only from the standpoint 
of farm employment and income but also for its probable 
bearing upon opportunities for decentralization of some 
types of industry. 

It is a well-known fact that much of the commercial 
forest area is multiple-use area involving not onty tim- 
ber production but also watershed protection, reci-ea- 
tion, wildlife support, and grazing. For example it 
has been indicated that 249,000,000 acres of forest not 
in fai'ms is used also for grazing purposes.'*' In all, 
223,668,000 acres of the commercial forest land is grazed. 
Noncommercial forests occupy 168,461,000 acres and of 
that area very nearly 120,000,000 acres are grazed. 

Saw Timber 

Of the total commercial forest area, somewhat less 
than half is classed as saw-timber area ; the latest esti- 
mate indicates nearly 213,000,000 aci'es so classified 
(table 12). Of the saw-timber aci-eage a little less than 
half is old growth. In the Columbia River Basin, in 
California, and the South Rocky Mountain areas, old 
growth still occupies a much larger acreage than 



" National Resources Board, Report 
table 2. 



December 1934, p. 109, 



second-growth saw timber. Elsewhere, excepting the 
Lake States, where the two are nearly even, the pre- 
dominant acreage is second-growth. 

The saw-timber stand indicated is 1,763,651,000,000 
board feet to which is added each year by gi'owth 
32,033,000,000 board feet and against which an annual 
depletion of 47,808,000,000 is charged, thus giving a net 
yearly depletion of 15,775,000,000 board feet. Exami- 
nation of table 13 reveals significant variation as to 
the density of saw-timber stand per unit of saw-timber 
area. The Columbia River Basin and California with 
around 20,000 board feet per acre of saw-timber area 
are at one extreme whereas the central area with only 
1,500 board feet per acre of saw-timber area is the other 
extreme. Depletion varies sharply from region to re- 
gion, not only as to total, which is heavy in the 
Columbia River Basin and the south, but in relation to 
growth. In the northeastern area depletion of saw 
timber is now so low as apparently to be offset by 
growth. Elsewhere depletion exceeds growth. The 
variations from area to ai'ea as to the quantitative 
abundance of saw-timber resources suggest that saw- 
timber areas near present heavily industrialized sec- 
tions of the country are relatively poor, with the 
exception of the Pacific Coast in respect to softwoods. 



Industrial Location and National Resources 



55 



Table 10. — Commercial and noncommercial forest areas, by 

States 

(Thousands of acres] 



State 


Total 
land area 


Commer- 
cial forest 
land > 


Total 
forest 
land 


Percent of 
total land 

area 
classed 
as com- 
mercial 
forest 
land 


Alabama 


32,819 
72,838 
33,616 
99,617 
66,341 
3,085 
1,258 
35,111 
37,684 
53,347 
35,868 
23,069 

35, 575 
52, 335 
25,716 
29,062 
19, 133 

6,402 
5,145 

36, 787 

51, 749 
29,672 
43, 985 
93, 524 
49, 157 
70,285 

5,780 
4,809 
78,402 
30,499 
31, 194 
44,917 
26, 074 
44,396 
61,188 
28,692 
683 
19, 517 
49, 194 
26.680 
167,963 

52, 598 
5,839 

25,768 
42, 775 
15, 374 
35.364 
62, 431 


18,837 

3,607 

20,689 

13,655 

12, 516 

1,636 

325 

21,852 

21.035 

15, 215 

3.196 

3,438 

2,358 


18. 877 
19J629 
20.913 
48. 159 
20, 431 
1,648 
325 

23, 561 
21,432 
25,095 

3,?17 

3.471 

2,382 

1,251 

9.4S2 

16,211 

14, 956 

2,387 

3,004 

19,073 

19,615 

15, 873 
15,596 
20,687 

970 

8,655 

4,608 

2,013 

20,066 

14, 179 

18,588 

587 

4,662 

11,771 

29,662 

15,312 

367 

10, 732 

1,733 

12,821 

26, 657 

24, 215 
3,349 

1.3,608 
24, 070 
8,961 

16, 946 
8.350 


57 




5 


Arkansas. __ 


62 


California _ 

Colorado _ 


14 
19 


Connecticut 


53 


Delaware __ 

Florida _._ 

Georgia 


26 
62 
56 




29 


Dlinois- -.- _ 


9 




15 


Iowa.-- --. .. 


7 







Kentucky. _ 


9,408 
16, 185 
14,933 
2,386 
3.001 
18, 679 
17,244 
15,859 
15,588 
14, 613 


37 


Louisiana . 


56 




78 


Maryland.. _ 


37 


Massachusetts '. 

Michigan . 


68 
51 


Minnesota 

Mississippi 


33 
63 




35 


Montana __. 

Nebraska 


16 



Nevada ... 


377 
4,575 
2,000 
4,018 
11,539 
18, 161 


1 




79 


New Jersey ... .. 


42 




5 


New York 


38 




58 


North Dakota 







4,651 
4,224 
24. 452 
15, 278 
361 
10, 706 
1,213 

12, 555 
10,806 

3,348 
3,342 

13, 375 
19, 562 

8,859 
16,472 
5,588 


18 


Oklahoma 


10 




40 


Pennsylvania 


53 




53 


South Carolina 


55 




3 




47 




6 


Utah 


6 




57 
52 




46 


West Virginia 


58 




47 


Wyoming .. 


9 






Total 


1,903,217 


461, 697 


630,158 


24 







SouBCB : U. S. Forest Service. 

* Laud capable of producing timber of commercial quantity and quality, 
and available now or prospectively for commercial use. 

Tabus 11. — Oicnership of forest land in the continental United 
States, exclusive of Alaska 



Ownership class 


Total 


Commer- 
cial 


Noncom- 
mercial 


Private: 

Farm woodland 


Million 
acres 
185.5 
248.3 


MUtion 
acres 
138.8 
202.1 


MiUion 

acres 
46.7 




46.2 






Total.. 


433.8 


340.9 


92.9 






Public: 

rnrnmnnity 


7.8 
19.0 
12.0 

6.S 
24.0 
122.0 

6.0 


7.1 
16.9 
6.4 




State 


2. 1 




5.6 


National parks and monuments _ . 


6.5 




4.7 
81.6 
4.2 


19.3 


National forests 


40. 5 


Other Federal 


.8 






Total 


196.3 


120.8 


75.5 








630.1 


461.7 


168.4 







If the pictuie of our forest reserves is to be more real- 
istic, attention must be directed to species (figure 38), 
to age, and to economic and geographic factors in- 
volved in the problem of the supply and demand. 
One authority has recently summai'ized the situation: 

* * * the bulk of our wood is consumed as saw timber. From 
it are obtained lumber, veneer, cross ties, and much of our pulp- 
wood. The volume of our remaining saw timber is 1,764 million 
board feet. Three-fourtlis of this is old growth. But because 
of poor quality, inferior species, remoteness, etc., probably not 
over two-thirds of all saw timber is economically available under 
present market condltioii.s. 

In 1936 the total drain through cutting and losses on our 
combined forest capital of saw-timber and cordwood-size ma- 
terial exceeded growth by 2.2 billion cubic feet. The drain on 
saw timber alone, estimated at 47.8 billion board feet, exceeded 
total saw-timber growth by 15.8 billion board feet, or 50 percent. 
But because of poor quality and poor species and remote loca- 
tion, not all growth really counts. So drain exceeded efEective 
growth by an additional 4.5 billion board feet. The relation 
between saw-timber drain and growth is still less favorable be- 
cause drain includes more high-quality material than growth 
does.'' 

Lumber 

In 1936, 42,443,000,000 board feet of saw timber were 
cut for lumber, and other items as shown in table 14. 
The distribution of the lumber production by regions 
for 1938 is shown in table 15, amounting to a total of 
21,646,000,000 board feet. That the softwoods are pro- 
viding approximately six tiiin's as much lumber as the 
hardwoods is indicated therein. Also the outstanding 
positions of the west coast area and of the South as 
lumber producers is strongly indicated. It may be 
noted by reference to table 13 that the cut of saw timber 
much exceeds the rate of growth in the western area, 
but that the differential is not so great in the South. 

AVhen production of lumber is compared with con- 
sumption by regions (table 15) it is evident that the 
heavier industrial regions of the East and Middle jior- 
tions of our country are deficit areas, using something 
like four times as much lumber as they produce. In 
the West, it is interesting to note that the South Pacific 
area with its increasing industrialization, is at least for 
the present a large deficit area. 

That production and consumption even for a single 
State, depending as they do on species and many other 
factors, become far from a simple matter, is illustrated 
by the following : 

Consumption of lumber in California exceeds production in 
the State in the ratio of more than 5 to 3 (2,570,000,000 and 
1,400,000,(XIO board feet nnnually respectively). Nevertheless, 



Source; R. E. Marsh and W. H. Gibbons, "Forest Resource Conservation" table 
3, p. 467, Yearbook of Agriculture, I9i0, Washington, 1941. Also, Forest Lands of The 
United States, p. 20, Senate Document 32, 77th Congress, Washington, 1941. 



''Rcpurt of tilt Chief of the Forest Seriite, I9W, V. S. Department 
of Agriculture, Forest Service, Washington, 1940. pp. 14-16. 



56 



National Resources Planning Board 
Table 12. — Commercial forest area of the United Stales, by character of growth and region, 193S 





Total 


Saw-timber areas ' 


Cordwood 
areas' 


Fair to 
satisfactory 
restocking 

areas > 


Poor to non- 


Region 


Total 


Old growth 


Second 
growth 


restocking 
areas * 




1,000 acres 
59, 376 
29, 231 
52. 395 
202.631 
73,842 
13,655 
30,653 
14 


Percent 

13 

6 

11 

44 

16 

3 

7 

(1!) 


1,000 acres 
21, 154 
9,680 
7,123 
96.694 
44. 106 
11.417 
22.683 
5 


1,000 acres 

8,002 

367 

3.586 

25,128 

37, 206 

8,653 

17,889 

1 


1,000 acres 
13, 152 
9,313 
3.637 
71,566 
6.900 
2.764 
4,794 
4 


1,000 acres 

15. 361 

8.660 

10.831 

47. 961 

11,967 

143 

5,859 

4 


1,000 acres 

14, 702 

5,204 

13.442 

29.114 

8,623 

155 

161 

6 


1,000 acres 
8,159 




5.687 


Late' - 


20,999 
28,782 


Columbia River Basin ' - . 


9,246 




1,935 




1,950 


Plains " 








Total 


461,697 


100 


212,862 


100,832 


112. 030 


100,791 


71,306 


76,738 







1 Includes areas characterized by timber large enough tor sawlogs Oumber) in accordance with the practice of the region regardless of its actual use. Old-growth areas bear 
uncut or lightly cut stands of mature saw timber; second-growth areas support predominately immature saw timber which has come in following removal of the old timber by 
cutting or other causes. This means: For the South, at least 600 board feet per acre in trees 9 inches in diameter breast high and larger of pine and cypress and 13 inches and larger 
of hardwoods (of the 96.694 thousand acres of saw timber it is estimated 22 million acres bear less than 1,500 board feet per acre) ; Lake, 2,000 board feet per acre in both hardwood 
and softwood trees 9 inches and larger; Columbia River Basin, interior, 3.000 board feet per acre for pine and 4,000 board feet for fir trees 11 and 13 inches and larger, respectively, 
and for west coast, 5,000 board feet per acre in trees 15 inches and larger for softwoods. 

! Cordwood areas bear stands characterized by timber too small for sawlog production but large enough for cordwood regardless of whether the stand is cut for this use or held 
for saw timber. Does not include noncommercial woodland even though subject to some cutting. 

' Fair to satistactorv restocking areas include lands on which at least 40 percent of the growing space is fully occupied by commercial species predominately below cordwood size. 

I Poor to nonrestocking areas include lands with less than 40 percent of the growing space fully occupied by commercial species predominately below cordwood size. 

• New England and Middle Atlantic States combined, the area northeasterly from the Potomac River. 

« Illinois, Indiana, Iowa, Missouri, and Ohio. 

' Michigan. Minnesota, and Wisconsin. . , „, , . . _, 

s States south of the Ohio and Potomac Rivers, including Arkansas, Louisiana, and the easterly portions of Oklahoma and Te.\as. 

' Idaho, Montana, Oregon, and Washington. . . „ . 

'» Arizona, Colorado, Nevada, New Mexico, Utah, Wyoming, and 5 southwestern counties of South Dakota. 

" North Dakota, South Dakota (except 5 southwestern counties). Nebraska, Kansas, and the westerly portions of Oklahoma and Texas. 

<'■ Less than 0.005 percent. 

SotJRCE: R. E. Marsh and W. H. Gibbons, op. cil., table 2, p. 463. 

Table 13. — Saw-timher area, stand, growth, and depletion in the with industrial uses for the wood. Ideally, the produc- 

United States, 1938 ^-^^^ ^^ f^^j ^^^^ ^^^ ^^ managed in such a way as to 

utilize weed species, to thin young stands, and utilize 
nonlumber parts of saw timber. 

Of the 66,000,000 cords of fuel wood produced in 
1936 approximately 70 percent constituted true drain 
on commercial forest; the remainder was largely sal- 
vage from logging operations. Much of the true drain 
was from cordwood trees rather than from saw-timber 
trees (table 14). 

Pulpwood 

The production of pulpwood, for its several rapidly 
growing industrial uses, has come to be, in terms of 
cubic feet of timber used, the third largest aspect of 
the forest industry. Of a pulpwood consumption in 
1938 of 9,194,000 cords,^ approximately 8,163,000 cords 
were produced domestically. Over half of this amount 
was derived from saw-timber trees and somewhat less 
than half from cordwood trees. The areas of consump- 
tion of such bulk wood material are indicated in 
figure 39. Wood pulp production, closely related to 
pulpwood consumption, amounted to 5,934,000 tons. 
Southern yellow pine has been an increasingly impor- 
tant type in pulp production and now accounts for 
more than one-third of the total, whereas the northern 
domestic spruce has declined from its earlier position 
of leadership. The southern area is one in which, be- 
cause of climate and soil, these soft pulpable species 
grow in 20 to 30 years to a size adequate for harvest. 



Kegion 


Saw- 
timber 
area i 


Saw- 
timber 
stand' 


Annual 
saw- 
timber 
growth 3 


Annual saw-timber 
depletion 




Cut< 


Total 


Northeastern. . 


Thousand 

acres 

21.154 

9,680 

7,123 

96.694 

44.106 

11.417 

22.683 

5 


MiUion 

feet board 

measure 

84,025 

14.301 

57,616 

386. 570 

882. 632 

213.480 

124,992 

35 


Million 

feet board 

measure 

2,625 

978 

1,850 

20, 403 

5,247 

414 

616 

w 


Million 

feet board 

measure 

2,190 

1,770 

2,146 

21,869 

12,084 

1,919 

466 

W 


MUlim 
feet board 
measure 
2,468 


Central 


1.781 


Lakes 


2.421 


South 


23.642 


Columbia River Basin_ 

California .. 


14.263 
2,650 


South Rocky Mountains 

Plains 
liana 


583 






Total 


212,862 


1,763,651 


32, 033 


42,444 


47,808 







• Areas characterized by timber large enough for sawlogs Oumber) in accordance 
with the practice of the region, regardless of its actual use. Status, close of 1938. 

3 Includes trees large enough for lumber, cross ties, veneer, and similar sawed or 
sliced products, on commercial forest-land area, in accordance with the cutting prac- 
tice of the region concerned. Stattis, close of 193S. 

3 Estimates on the basis of lumber tally, assuming bark excluded and utilization 
consistent with good practice in each region. As of 1938. 

* Trees of saw-timber size, cut for lumber and other commodities. Based on data 
of 1936. 

" Growth and depletion considered negligible. 

Note— Regions are the same as in table 12. 
Source: U. S. Forest Service. 

we ship out of the State 40 percent of what we cut (587,000,000 
board feet). Oregon and Washington ship us somewhat more 
than we cut within our own borders (1,500,000,000 board feet)." 

Fuel Wood 

In some areas wood is still an important fuel. 
This use of wood relieves to some extent the de- 
mands which would otherwise be put on mineral 
fuels and at the same time competes to some extent 



^'Forest Lands of the United States, Hearings before the Joint 
Committee on Forestry, 76th Cong.. 3d sess., Washington, 1940, p. 683. 



"Agricultural Statistics, 1940, p. 680. 



Industrial Location and National Resources 



hi 



%S^~^~ 




PULPWOOD CONSUMPTION, BY STATES, 1939 



■Y 1 



LEGEND 

Uoel CORDS IN THOUSANDS 



ALL NORTHEASTERN AND 

CENTRAL STATES COMBINED 538,522 CORDS 

R33J1 ALL SOUTHERN STATES 
k^2jsJ COMBINED: 1,613,501 CORDS 

UNITED STATES TOT/^L: 10,816,466 CORDS 
SOURCE CENSUS OF MANUFACTURES; 1939. PROCEjSED RELEASE'SEPT I0,J94 




Prvparwi in ■iHi..v nf th" National Resources Committee 



Figure 39 

T.ABLE 14. — Timber removed from commercial fcresis cf the United States by cutting and by destructive agencies, 1936 







TIMBER CUT FOR COMMODITIES 










Item 




All timber ' 




Saw-timber trees ' 


Cordwood trees 


s 




Total 


Softwood 


Hardwood 


Total 


Softwood 


Hardwood 


Total 


Softwood 


Hardwood 




1,000 cu. ft. 
5,367,585 
3,619,482 
705,924 
354, 189 
327,060 
252,443 
161.016 
149,447 
108, 658 
354,203 


1,000 cu. ft. 

3,997,846 

1,219,241 

638.026 

182. 611 

131.434 

71.472 

47.264 

61. 169 

107.600 

153.379 


1,000 cu. ft. 

1,369,739 

2,400.241 

67,898 

171,578 

195. 626 

180. 971 

113,752 

88.278 

1.068 

200,824 


1,000 bd. ft. 

27,702,415 

6, 400. 401 

2,252,147 

1,491.753 

628,576 

1,190.415 

151.102 

704. 346 

492, 590 

1, 429. 629 


1,000 bd. ft. 

22.016.083 

3. 121. 767 

2.107,802 

885. 461 

252. 354 

412,733 

77,693 

333,603 

489. 271 

710.516 


1,000 bd. ft. 

5.686.332 

3.278.634 

144. 345 

606.292 

376.222 

777.682 

73. 409 

370. 743 

3.319 

719. 113 


Cords 

218, 42-2 

25, 5,=^1. 196 

2. 519. 165 

92. 300 

2.113.031 

7.747 

1, 147, 749 

7,010 

12, 157 

543.258 


Corda 

150,908 

6.495.647 

2. 196. 496 

37.000 

964. 527 

181 

272,921 


Cords 
67, 514 


Fuel wood - 


19, 055, 549 
322.669 


Hewed ties - . 


55,300 


Fence posts > - 


1,148,504 




7,666 


\1inp timhen! fiYiiiTKi) 


874,828 




7,010 


Shingles 


11,086 
159,950 


1,071 


Other -- 


383,308 






Total 


11,400,007 


6,610,042 


4,789,965 


42.443,374 


30, 407. 283 


12, 036, 091 


32,212,035 


10,288,716 


21,923,319 








T 


IMBER RE\ 


lOVED BY ] 


DESTRUCTI 


VE AGENCI 


ES 








Fire 


861,608 
1,201,141 


688.695 
861. 706 


273.013 
339.435 


1,390,373 
3,973,930 


1,195,796 
3, 570, 783 


194.577 
403, 147 


6,678.064 
4.801.810 


4, 137, 164 
2.079.911 


2,540,900 




2,721,899 






Total 


2,062,749 


1. 450, 301 


612.448 


5,364.303 


4.766.579 


597,724 


11,479,874 


6.217.075 


5,262,799 








13,462,756 


8,060,343 


5.402,413 


47.807.677 


35.173.862 


12, 633, 815 


43,691,909 


16,505,791 


27, 186, 118 







' Includes saw-timber and cordwood trees. The volumes, necessarily shown in cubic feet, include the tops (cordwood size and l..rger) of the softwood saw-timber trees and the 
tops and limbs of the hardwood saw-tiniber trees. Bark is not included. 

> Includes only limber of saw-timber size. The volumes, in board feet, are equivalent to the lumber which could have been sawed from such trees. 
' Includes only the merchantable volume, in cords, of trees below saw-timber size, from saw-timber, cordwood, and restocking areas. 

Soubck: R. E. Marsh and W. H. Gibbons, op. cit., table 8, p. 480. 

414786—43 5 



58 



National Resources Planning Board 



Table ]5. — Relation of lumber production and consutnpt ion in the United Stales, by regions, 193S 



Region 


Production 


Consumption 


Surplus pro- 
duction (+) 
orshoitage 
(-) 


Ratio con- 


Total 


Softwood 


Hardwood 


Total 


Softwood 


Hardwood 


production 




A/i//i07i 
ft. b. m. 
511 
298 
775 
863 
37 


Percent 
2.4 
1.4 
3.6 
4.0 
.2 


Million 
ft. b. m. 
406 
103 
317 
160 
27 


Million 
ft. b. m. 
105 
195 
458 
703 
10 


Million 

ft. b. m. 

983 

2,677 

1,770 

3,494 

863 


Percent 
4.6 

12.5 
8.3 

16.3 
4.0 


Million 

ft. b. m. 

833 

2,232 

1,364 

2,496 

839 


Million 
ft. b. m. 
150 
445 
406 
998 
24 


Million 

ft. b. m. 

-472 

-2, 379 

-995 

-2,631 

-826 




Middle Atlantic . . . - . 


8 98 


Lake 




Central 


4 05 




23.32 




Total 


2,484 


11.6 


1,013 


1,471 


9,787 


45.7 


7,764 


2,023 


-7,303 


3 94 






South Atlantic. . - _ 


2,470 
2,641 
4,247 


11.4 
12.2 
19.6 


1,914 
2,311 
3,279 


556 
330 
968 


1,923 
1,132 
2,642 


9.0 
5.3 
12.4 


1,455 
1,006 
2,186 


468 
126 
456 


+547 
+1,509 
+1,605 


78 


East Oulf 




Lower Mississippi _ . _ - 


62 






Total - 


9,358 


43.2 


7,504 


1,854 


6,697 


26.7 


4,647 


1,050 


+3,661 








North Pacific 


7,140 

1,462 

792 

410 


33.0 
6.7 
3.6 
1.9 


7,112 

1,462 

792 

410 


28 
(') 
(') 
(') 


2,201 

2,682 

400 

615 


10.3 

12.5 

1.9 

2.9 


2,174 

2,634 

397 

611 


27 
48 
3 
4 


+4, 939 

-1,220 

+392 

-205 




South Pacific . . 


1 83 






South Rocky Mountain . . 


1 50 






Total - 


9,804 


45.2 


9,776 


28 


5,898 


27.6 


5,816 


82 


+3,906 


60 








21,646 


100.0 


18,293 


"■ 3,353 


21.382 


100.0 


18,227 


3,156 


+264 









> Less than 0.5 million board feet. 

NOTE.^Lumber regions consist of the following States: 

New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont. 

Middle Atlantic: Delaware, District of Columbia, Maryland, New Jersey, New York, Pennsylvania. 

Lake: Michigan, Minnesota, "Wisconsin. 

Central: Illinois, Indiana, Kentucky, Missouri, Ohio, Teimessee, West Virginia. 

Prante: Iowa, Kansas, Nebraska, North Dakota, South Dakota. 

South Atlantic: North Carolina, Soutn Carolina, Viiginia, 

Pant Oulf: Alabama, Florida, Georgia. 

Lower Mississippi: Arkansas, Louisiana, Mississippi. Oklahoma, Texas. 

North Pacific: Oregon, Washington. 

South Pacific: California, Nevada. 

North Rocky M(mntain: Idaho, Montana. 

South Pocky Mountain: Arizona, Colorado, New Mexico, Utah, Wyoming. 

Source: V. S. Forest Service, Division of Forest Economics. 



Other advantages, including accessibility to market, 
suggest that the humid forest area of the South will 
take over a larger share of the burden of providing the 
pulp needs of industry. 

Paper, one of the more necessary and useful items of 
our civilization, is little more than a felted sheet of 
wood fibers. Though straw and cotton are used to 
some extent as raw material, the 11,381,000 tons^ 
of paper produced in the United States in 1938 
was very largely produced (85 percent or more) 
from wood, processed by mechanical or chemical treat- 
ment. Paper and pulp constitute a large part of our 
wood imports, as indicated in table 16. Rayon, the 
most important of the synthetic fibers, is processed 
from cellulose. At present full capacity, the industry 
requires approximately 510,000,000 pounds of cellulose 
per year, 385,000,000 from wood pulp, and 125,000,000 
from cotton linters. In 1940 the industry produced 
471 million pounds of rayon yarn and staple fiber, 
against 379 million in 1939.*^ Though mineral fibers, 
nylon, vinyon, and fiberglas are not yet serious 
competitors, silk (wholly imported) accounted for 
$125,930,868 of the imports of raw materials and for 
$5,671,751 of those for manufactured production in 



1940. Rayon and other synthetic textile imports in 
that year were valued at less than 5 million dollars. 
As to exports, rayon accounted for nearly $18,000,000 
in 1940, whereas manufactured silks exported were 
valued at only $6,417,288.^' Cellophane and other 
plastics use small amounts of cellulose at the present 
time, but this type of use is relatively new and may 
expand markedly in the future. 

Imports and Exports of Wood 

An indication of the complexity of the foreign trade 
of the United States in wood and wood materials is 
suggested by table 16. Also therein is revealed a so- 
called unfavorable balance of trade with imports ex- 
ceeding exports by almost $100,000,000. the larger items 
of excess being paper manufactures and paper base 
stocks (almost wholly wood pulp and pulpwood). 

Wood Reserves for the Future 

The question of supplies for the future is complex, 
not alone from the standpoint of acres, stocks, and 
species, but also from the standpoint of how much 
forest materials will be needed. We use only one- 
fourth as much lumber per capita as in 1906, yet the 
forest now has to meet demands, particularly for pulp. 



•> Ibid. 

"Ibid., p. 131, and also "Synthetic Fibers," The Index (New York 
Trust Company), vol. XXI, No. 1, 1941, pp. 18 and 24. 



"" Monthly Summary of the Foreign Commerce of the United States, 
December, 1940, Washington, 1941, pp. 10, 25, and 26. 



Industrial Location arid National Resources 
Table 16. — Major items of wood export and import, 1940 



59 



Article 


Exports 


Imports 




$2,603,534 
36,781,266 
20,745,643 
1,358,594 
32, 469, 619 
66,390,491 


$8,448,699 




24,177,362 




10, 699, 155 


Cork and manufactures 


6, 763, 249 




75, 414, 452 


Paper manufactures . - - - -- 


132, 618. 140 






Total . 


100, 349, 047 


258, 120, 957 







Soukce: Adapted from Month!!/ Summary of the Foreign Commerce of the United 
Stal't. December 1940, Washington, pp. 11 and 26. . 

which were almost unknown then. There is also the 
question of how long and how much we can depend on 
Canada and northwestern Europe for pulpwood and 
wood pulp. 

The solution of the supply problem involves first 
the wider application of modern forestry to commercial 
forest lands, whether public or privately held, whether 
farm or nonfarm forest. One recent authoritative 
statement on the matter holds that to attain the objective 
of bringing timber yields and requirements into balance 
in 75 years would require the following procedures : 

* * * an Increase under intensive forestry of more than a 
million acres a year. It would mean a great expansion in the 
area under extensive forestry. The growing stock in the East 
would have to be built ui> to twice the present available stand. 
In the West the remaining timber would have to be carefully 
husbanded to facilitate the conversion of the western forests to 
a sustained-yield basis. * * • The safeguarding of existing 
stands in the East and their development into adequate growing 
stock is the most urgently needed measure. Generally speaking, 
a forest property upon which stands are already established, even 
though inadequately, can be developed into a regulated sustained- 
yield enterprise at less expense and more quickly than can one 
upon which stands are largely lacking. 

This does not minimize the necessity of providing for an ade- 
quate planting program for areas not likely to restock naturally ; 
for the development of adequate protection against fire, insects, 
and disease ; and for the control of cutting in the western 
regions, to facilitate the conversion of those forests to an adequate 
sustained-yield basis." 

Organic Oils, Chemicals, and 
Miscellaneous Products 

Vegetable oils are used not only for food, as indi- 
cated in table 1 ; they provide a significant raw material 
basis for several industries producing nonedible prod- 
ucts. Nearly a third of the vegetable oils are used for 
inedible manufactures. The oils in this group differ 
widely among themselves — cottonseed oil is practically 
all used for food, palm oil for food and soap, linseed, 
tung, perilla, and castor oils wholly for nonedible prod- 
uces (table 17). Though soaps take about half of all 
the vegetable oils going to inedible uses, the use of 

«' R. E. Marsh and W. H. Gibbons, op. cit. pp. 484 and 485. 



Table 17. — Vegetable oils and their industrial uses, 1938 
[Millions of pounds] 



Oil 


Soap 


Paint 

and 

varnish 


Lino- 
leum 
and 
oilcloth 


Print- 
ing 
inks 


Miscel- 
laneous 
products 


Total 
non- 
edible 
uses 


Grand 
total 
edible 
and non- 
edible 
uses 


Cottonseed 


3 

343 

3 

11 

1 








3 

4 
3 
5 
8 
3 


6 
348 
6 
35 
298 
87 
33 
28 
112 


1,540 
555 




1 






Corn 






73 




15 

217 

78 

24 

S 


4 
5S 
4 

7 
1 




237 


Linseed 

TunK 


17 
2 
2 


298 
87 


Perilla.. 




33 


Castor - , 


2 
92 


20 
20 


28 


Palm 




253 












Total 


455 340 71 


21 66 1 953 


1 3, 166 



' Total includes 62 million pounds of edible peanut oil. 

Source: Adapted from W. B. Van Arsdcl, "The Industrial Market for Farm Prod 
acts," Farmers in a Changing World, Yearbook of Agriculture, I9i0, Washington, p. 623 

Table 18. — Soybeans, acreage and production, 1929 and 1939 



State 


Total acreage 


Total production 
(bushels) 




1939 


1929 


1939 


1929 




299,817 

80 

595, 685 

71 

598 

553 

44, 631 

50 

4.009 

240, 374 

24 

2, 647, 238 

1, 308, 974 

1, 254, 425 

39, 827 

172,350 

516, 873 

194 

60, 149 

406 

115,794 

183, 601 

727, 136 

512, 396 

77 

10, 076 


90,295 

17 

54,307 


61,884 

33 

551, 788 

661 

1,532 

740 

330, 531 




Arizona 


81 


Arkansas _ 


65,869 


California 




583 

760 

24,813 

120 

2,298 

39, 647 

171 

496, 377 

321, 627 

152, 406 

18, 680 

101, 677 

216.648 

2,064 

26, 471 

1,001 

6,112 

5,628 

67, 939 

362,888 

371 

2,595 


2,498 

159 

211, 191 


Connecticut 

Delaware 

District of Columbia 


Florida 


671 

67, 637 

144 

44, 771. 860 

13, 763, 282 

11,359,475 

88,322 

277, 410 

198, 317 

491 

179, 789 

668 

824, 505 

466. 585 

264, 945 

1.090,829 

146 

20,566 


2,591 

68,089 

2,204 

3, 249, 996 

1, 379, 279 

573, 711 

29,906 

70, 189 

191 161 


Georgia 

Idaho 


Illinois 








Kentucky _._ 


Louisiana. . 








54,363 




Michigan 


13,251 
3,380 

76, 719 

725,114 

1 973 




Mississippi.- 




Montana . 






Nevada • 






966 

2i595 

241 

18,186 

751, 309 

2,832 

808,648 

20, 749 

4 

70,443 

163 

143,990 

1,483 

437, 725 

18, 695 

20 

1,784 

204, 895 

60 

47,490 

169,299 

59 


1,095 

3,058 

303 

3,241 

376, 806 

502 

90,944 

21,371 

301 

11,626 

31 

31, 174 

2,169 

196,509 

4,523 

145 

3S4 

122,041 


283 

48,984 

509 

97,373 

1, 650. 314 

9.966 

10, 293, 393 

7,680 

6 

159,533 

322 

76, 677 

5,369 

126, 154 

16,000 

238 

1,397 

594, 890 

654 

11, 805 

166,355 

28 




Xew Jersey 


3,164 

2,340 

3,781 

1, 047, 201 

195 




New York 




North Dakota 


Ohio... 


316, 462 
52,893 

88 




Oregon . . 


Pennsylvania 


7,860 
34 




South Carolina _ 


47 326 


South Dakota .. 


' 419 




104,163 

13,404 

5,006 

47 

261,234 


Texas 


Utah .- 


Vermont 


Wa-shington 




24,639 

IS. 391 

231 


10, 714 
13,451 


Wiscon'^in _ 








U.S. total 


11, 458, 934 


2, 910, 979 87, 590, 641 


8, 661, 188 



' No report on soybeans. 
Source: U. S. Census. 

some of the more unsaturated oils, such as tung, 
perilla, and linseed, and some soybean, as a drier in 
paints and varnishes, is well known and still very im- 
portant in spite of the increasing use of competitors 



60 



National Resources Planning Board 




U. S. DEPARTMENT OF AGRICULTURE 



NEG. 39B50 BUREAU OF AGRICULTURAL'CCONOHICS 



Figure 40 



from nonvegetable sources, the petroleum and fishing 
industries. 

Though our farms produce an abundance of cot- 
tonseed for cottonseed oil, large amounts of oil, oil 
seeds, and oil-source materials are imported, amount- 
ing in 1940 to 2,600 million pounds valued at ap- 
proximately $100 million. In the same year we ex- 
ported oil seeds and vegetable oils to a value of less 
than $10,000,000. Especially prominent among the 
imports are palm oil, coconut oil, copra, linseed, 
and tung. 

Soybeans deserve special mention. Of a total of 
11,462,000 acres of soybeans grown for all purposes in 
the 27 more commercial soybean States in 1940, only 
4,961,000 acres were harvested for beans."^ That acre- 
age provided 79,837,000 bushels, as against a harvested 
crop of 91,272,000 bushels from 4,417,000 acres m 
1939.^ Most of this production was in those States 
for which soybean acreage and production figures from 
the Census of 1940 are shown in table 18. Production 
of soybean oil during 1940 was 536,987,000 pounds,^' a 
figure which included a minor amount of imports 



(4,849,000 pounds"^). The bushels of beans crushed 
during the same period amounted to 57,697,000.*' 

If 70,000,000 bushels of the 1940 harvested crop had 
been pressed for oil, leaving the remainder for seed, 
the resulting product would have been about 840,000,000 
pounds of oil. This is allowing that the recoverable 
oil amounts to 20 percent of the weight of the beans.'" 
The remainder, about 80 percent by weight, is high- 
grade protein, about 95 percent of which can be used 
for livestock feed and fertilizer, but which might be, 
and is now in part, a basis for the plastics industry. 

Among chemicals should be mentioned the products 
of wood distillation, those from hardwoods being wood 
alcohol (methanol produced from "wood distillation 
and charcoal manufacture" in 1937 amounted to nearly 
4 million gallons valued at $1,133,000), acetate of lime, 
and wood charcoal. From softwoods of the Gulf and 
Atlantic Coasts, either from the forest turpentine in- 
dustry or by distilling resinous stumps and roots, 
turpentine (35,460,900 gallons), rosin (2,612,391 bar- 
rels, each of 500 pounds weight), and charcoal were 
produced in 1938-39. Even so, we imported in 1940, 
gums, resins, and balsams in considerably larger value 



°" General Crop Report, December 1940, p. 79. 
»°/6id., p. 1. 

"' The Fats and Oils Situation, Bureau of AgricuUural Economics, 
D. S. Department of AgricuUure, February 1941, p. 10. 



'^Itid., p. 11. 
«> Ibid., p. 17. 

'" W. B. Van Arsdel, "The Industrial Marliet for Farm Products," 
Yearbook of Apricultvre, ISlfi, p. 614. 



Industrial Location amd National Resources 



61 



than our exports of such items — $17,389,993 against 
$12,097,636. 

Casein in amounts of as much as 30,000 tons annually, 
requiring over a billion pounds of skimmed milk, is 
being used, mostly in the rapidly growing plastics in- 
dustrj'. Soybean meal also is increasingly used as 
basic material for plastics. Furfural from oat hulls 
is used in small amounts in the making of lacquers and 
dyes. Starches from corn, potatoes, and sweetpotatoes 
have important industrial uses. 

Drugs, herbs, and essential oils are, of course, pro- 
duced to some extent in the United States. The pep- 
permint oil industry is fairly well developed on the 
muck lands of northern Indiana and southern Michi- 
gan. But, on the whole, either because of the lack of 
suitable growing conditions or more likely the higher 
labor cost here, we import drugs, herbs, leaves, and 
roots to a value in excess of $15,000,000 per j'ear and 
essential oils in value of $6,406,000. Our exports of 



such materials are valued at little more than $2,000,000. 
Tobacco is one of our important crops. Production 
in 1940 of all types amounted to 1,376,471 pounds, a 
little more than the average for the 10-year period 
1929-38. '^ Special soil conditions in some of the area 
indicated in figure 40 favor production as do the skills 
acquired in growing and processing. Even so, it is 
reasonably certain that production can be expanded 
to meet any probable market demand — the difficulty at 
present is that of supply exceeding demand, except for 
a few special types. For mixing with domestic types 
we imported in 1940, $36,721,805 worth of unmanufac- 
tured tobacco, mostly cigarette leaf. In addition manu- 
factured tobacco valued at $3,712,013 was imported, 
njostly from the Philipjiines. In the same year, exports 
of manufactured and unmanufactured tobacco were 
valued at $57,469,870. 



' Oineral Crop Report, December 1940, p. 1. 



62 



National Resources Planning Board 




CHAPTER 3 — MAJOR GROUPS OF ECONOMIC ACTIVITY 

By P. Sargant Florence and Ruth Friedson* 



This chapter will sketch the distribution of the 
working population, providing a rough outline of 
the areal pattern of industry, and block out the 
geographic structure of production in terms of the 
major groups of economic activity. It indicates gen- 
erally specialization in production within different 
sections of the United States and identifies the broad 
areas of concentration for particular groups of in- 
dustry. Such a background is a prerequisite to the 
evaluation of trends in the location of industries and 
to the specific measurement of locational relationships 
developed in chapters 4 and 5; moreover, it provides 
a frame of reference for the discussion of probable 
alternative effects of various locational policies on the 
geographic structure of tlie national economy. 

Density of Population as an 
Index of Economic Activity 

While immobility of population, differential repro- 
duction rates, and various other factors have resulted 
in a distribution of population not directly related to 
productive activity, differences in population density 
serve as a rough index of the relative extent of eco- 
nomic activity among various areas. A high density 
usually points to intensity of production and often to 
the development of peculiarly "urban" activities, mainly 
manufacturing and services, occurring in greater pro- 
portions in the more densely settled areas and requiring 
the use of comparatively little land. 

Figui'e 41 shows the density of population in the 
United States in 1940. The most obvious feature of this 
map is the uneven distribution between East and West. 
With the exception of a few areas on the Pacific coast, 
the western half of the United States has a relatively 
sparse jDopulation, rarelj- more than 25 persons per 
square mile (on a county basis) and with large areas 
of fewer than 5 persons per square mile. East of a 
line slanting from Lake Superior through central 
Texas almost all counties have at least 25 persons per 
square mile. Toward the Atlantic coast the density 
increases and reaches the highest levels in the North- 
east, in the Middle Atlantic States, and in Southei-n 
New England. The Southeast is marked by a density 
of lietween 25 and 100 persons per square mile, with a 

•Respectively, Consult.int. National Resources Planning Board (Pro- 
fessor of Economics, University of Birmingham. England) ; and .\ssist- 
Introduced in 1040. included the involuntarily unemployed. 



fairly pronounced band of counties in the lower Appa- 
lachian and Piedmont region of more than 100 persons 
per square mile. Areas of greatest population density 
are indicated in Figure 42, showing metropolitan areas 
of the United States in 1940. According to a recent 
study, population is still spreading out more evenly 
over the country as reflected in a consistently more uni- 
form State density. In order to have obtained a distri- 
bution of population among the States directly jiropor- 
tionate to land areas it would have been necessary in 
1850 to shift 66 percent of tlie population across present 
State lines, but in 1940 the required shift would have 
been only 42 percent. This percentage has fallen little, 
however, since 1910.^ 

The relationship between population and area is fur- 
ther illustrated by Figure 43, which shows the propor- 
tion of total land area and population of the United 
States included in each of the nine census regions. Be- 
fore considering variations in the utilization of re- 
sources as reflected by the distribution of gainful 
workers, one should note that differences in population- 
area ratios between the East and the West as a whole 
and between some regions in the West result in larjre 
part from the presence of semiarid and mountainous 
tracts which support relatively few inhabitants. 

Gainful Workers as a Measure 
of Economic Activity 

EmjDloyed workers, as defined in the Census of Popu- 
lation, constituted 34.3 percent of the total population 
of the United States in 1940. The proportion of the 
total population of each State in the labor force = 
ranged from 26.4 percent in New Mexico to 39.8 percent 
in Connecticut. 

In the following discussion, the number of employed 
workers has been used as the measure of relative inci- 
dence of the major groups of economic activity among 
various areas. Although '"employed workers'' do not 
reflect all the factors determining the comparative 
geogi'aphic importance of industries, they provide the 
only wnform hos/s avaUahle for measuring and com- 
paring the distribution of all types of economic activi- 
ties. Furthermore, in some ways "employed workers" 
are a better unit of measurement of relative activity 

' Edgar M. Hoover, "Interstate Redistribution of Population," Journal 
of Economic Histort/, fall, 1941. 

' Labor force is here used to include all employed persons and not 
merely wage earners. 

6? 



64 



National Resources Planning Board 




METROPOLITAN DISTRICTS OF THE UNITED STATES 



1940 

— r— a> 



r \ 



• » 

V 

-V 







i-:-^-^i-. 






1^; 



• • 



■| \ 



1" \ 
i • 



\ 



\, 






METROPOLITAN 

POPULATION 

MILLIONS 

20 



\ 








PHtPARED IN OFFICE OF THE NATIONAL RESOURCES PLANNING BOARD 



Figure 42 



than either "value of products" or "vahie added," 
which are available for manufacturing only. The for- 
mer includes the value of raw materials, and for both, 
comparisons between different periods would be dis- 
torted if changes in the price level took place. "Em- 
ploj^ed persons" is a better unit of measurement than 
manufacturing wage earners since the Census of Popu- 
lation, from which data on employed persons are taken, 
is not restricted by nondisclosure rules as is the Census 
of Manufactures, the source of information on wage 
earners. As has been indicated, the Census of Popu- 
lation is not limited to manufacturing. Data on gain- 
ful workers^ for 1930 are used only where no 
comprehensive data are as yet available for any later 
period. 

Major Economic Groups 

Viewed broadly, economic activities may be classed 
as (1) agricultural, (2) other extractive, (3) man- 
ufacturing, and (4) service, including building, trans- 

' In 1930. the Census of Population covered "persons engaged in 
gainful occupations" and, unlike the category "employed workers" 
Introduced In 1940, ir.cluded the involuntarily unemployed. 



portation, and trade. Extractive activities, such as 
agriculture, mining, forestry, and fishing, are located 
at the sites of the natural resources they exploit. 
Services are usually close to consumers, and their 
distribution, therefore, corresponds roughlj^ to that 
of population. Building is distributed more or less 
as the population ^ and maj^, for practical purposes, 
be treated as a service. No such general rule can be 
given, however, for tlie location iiattern of manufac- 
turing as a whole. Some manufactures are located 
close to resources, other near markets, and still others 
are "footloose"; some are widely distributed, while 
others ai'e concenti'ated in specific "localizations." 

Basic to an understanding of the problem of in- 
dustrial location is recognition of the geographic 
specialization in production in the United States. Na- 
tional occupational statistics show that the Southern 
States, with one-quarter of all employed workers, ac- 
counted in 1940 for roughly half the labor force in 



* Distribution of building and the other services relative to population 
is modified chiefly by regional variations in income pattern and extent 
of urbanization, as indicated in later sections of this chapter. 



Industrial Location and National Resources 



65 



agi'iculture; that the Northeastern States, with 50 per- 
cent of workers in all industry, included about 70 
percent of those employed in manufacturing ; and that 
Pennsylvania and West Virginia, with less than 10 
percent of all employed workers between them, had al- 
most 60 percent of those engaged in coal mining. 

Existence of a great national market and differences 
among sections of the United States in basic natural 
resources, in character of the population, and in in- 
dustrial evolution explain the general tendency for 
each area to specialize its production. While no State 
is self-sufficient, neither does any State devote its en- 
tire productive activity to one field. For example, al- 
though farming is the dominant activity in Iowa (one- 
third of all employed workers in 1940). 21 percent of 
the workers were in trade, 11 percent in manufac- 
turing, 7 percent in transportation, and 7 percent in 
personal services. In Georgia, where the production 
of cotton dominates the economy and one-third of 
the workers were employed in agriculture, 19 percent 
were engaged in manufacturing, 13 percent in domestic 
and personal service, and 15 percent in trade. It is 
clear that wherever there is any dominant activity there 
is also required a minimum effort in several other 



types of economic enterprise. AVe find that transpor- 
tation, trade, building, and the services do not dom- 
inate the economy of any region but rather occur 
wherever tliere ai'e goods to be moved and distributed 
and people to be housed and served. 

Table 1 shows the distribution of all gainful work- 
ers in the United States among the major groups of 
industry in 1940. Manufacturing engaged the largest 
single group, more than one-fifth of the entire labor 
force. This was the second decennial census year in 
which manufacturing exceeded agricultural in numeri- 
cal importance. Building, transportation, and trade, 
wlien grouped with the other services, totaled 54 per- 
cent of all gainful workei's, greater than the combined 
total of manufacturing and agriculture. 

A rough measure of the geographic concentration of 
these major groups of economic activity is provided 
by the coefficient of localization,^ which compares the 
distribution among States of a particular industry 
or group of industries with that of all industries. The 
lower the coefficient, the more evenly dispersed is the 
industry in question, and the higher the coefficient, the 



^ For method o£ computatloii, see chapter 5. 




nKFAMO IN 0(llC( Qt IHE NAIlomi RtSOUItCES PlANNIRfi BOMQ 



Figure 43 



414780—43 6 



66 



National Resources Planning Board 



Table 1. — Economic structure of the United States in terms of 
major groups of industry with measures of the localization 
of these groups, lO'/O 



Industry groups 



Agriculture 

Forestry and fisbing 

Coal mining 

Crude petroleum and natural gas products 
Other mines and quarries 

Total extractive— 

Manufacturing 

Construction 

Transportation and communication 

Trade 

Personal services 

Professional services 

Government 

Total service 

Industry not reported 



Percentage of 
total employed 



18.54 
.23 
1.17 
.41 
.45 



20.80 



4.55 
6.89 
21.85 
■ 8.88 
8.22 
3.88 



54.27 



1.52 



Coefficient of 
localization i 



0.326 
.476 
.649 
.620 
.388 



.06.'! 
.091 
.086 
.084 
.074 
.137 



1 The coefficient of localization measures complete coincidence of a particular 
industry with the distribution of all industry among the States as and complete 
differentiation approaches 1. fee eh. 4 for exact method of computation. 

more concentrated that industry relative to all industry. 
The extractive industries have the highest coefficients 
but even these "material-oriented" activities show wide 
variations in degree of concentration (table 1). Coal 
mining lias a coefficient almost twice as great as that for 
agriculture, while the latter is in turn almost twice as 
large as the coefficient for manufacturing, the most 



concentrated of the nonextractive groups. Construc- 
tion is the most evenly dispersed of any group over tlie 
whole occupied population. 

The tendency for the several services to scatter in 
conformity with the population, and for manufac- 
turing and the extractive industries to localize will be 
considered in the following sections. The basic data 
on the distribution of industries among States are in- 
cluded in table 2, which shows the percentage of all 
emploj'ed workers in the United States included in 
each State for 12 major groups of industry and 18 
subdivisions of manufacturing; and in table 3, which 
gives the same break-down for the total employed 
workers within each State. 

Agriculture 

Agriculture must perforce be located in relation to 
the distribution of arable land, but not all arable land 
is devoted to agriculture. Tlie geographic location of 
agricultural activity has deviated from the pattern dic- 
tated by type and quality of resources owing to popula- 
tion movements and the historical development of 
other productive activities. Alternative uses for land, 
custom, and many other factors also account for the 
use of arable land for purposes other than agriculture. 



Table 2. — Percentage distribution among the States of employed persons in each major group of economic activity, 1940 



All industries.. 

Industry groups: 

Agriculture..- 

Forestry and fi.shing 

Coal mining 

Oil and gas wells 

Other mines and quarries 

Construction _ 

Manufacturing 

Transportation, communication, etc _ 

Trade 

Wholesale and retail trade 

Finance, insurance, and real estate 

Business and repair services 

Personal services... .... 

Professional services , 

Amusement, recreation, etc 

Professional and related services _ 

Government 

Industry group not specified _ „. 

Manufacturing subdivided; 

Food and kindred products 

Textile-mill products , 

Apparel and other fabricated textile production 

Logging ., 

Sawmills and planing mills 

Furniture, store fixtures, and miscellaneous wooden goods. 

Paper and allied products 

Printing, publishing, and allied industries 

Chemicals and allied products 

Petroleum and coal products 

Leather and leather products 

Stone, glass, and clay products 

Iron and steel and their products 

Nonferrous metals and their products.. 

Machinery ...,.,_ 

Automobiles and automobile equipment 

Transportation equipment except automobiles 

Manufacturing industry not siiecitied. 



United 

States 

basic 

pattern 



18. .M 

.23 

1.17 

.41 

.45 

4.55 

23.41 

6.89 

21. 85 

16.69 

3.25 

1.91 

8.88 

8.23 

.88 

7.35 

3.88 

L53 

2.42 
2.59 
1.73 
.31 
.90 
.80 
.73 
1.40 
.97 
.45 
.81 
.75 
2.80 
.62 
2.37 
1.27 
.68 
1.76 



Division 



New England 



Maine 



0.62 



.44 
3.14 
.00 
.00 
.26 
.58 
.87 
.55 
.53 
.65 
.36 
.63 
.66 
.60 
.45 
.62 
.65 
.80 

.47 

1.99 

.19 

4.27 

.97 

1.29 

4.26 

.35 

.12 

.07 

4.81 

.22 

.13 

.05 

.33 

.01 

l.SS 

.18 



New 
Hampshire 



0.39 



.18 
.62 
.00 
.00 
.15 
.44 
.66 
.29 
.32 
.33 
.24 
.39 
.40 
.41 
.26 
.42 
.33 
.49 

.78 
1.36 
.07 
2.00 
.63 
1.08 
1.97 
.31 
.06 
.02 
S.96 
.27 
.10 
.07 
.34 
.01 
.78 
.35 



Vermont 



0.28 



.37 
.2fi 
.00 
.00 
.72 
.27 
.20 
.25 
.22 
.22 
.17 
.30 
.31 
.28 
.16 
.30 
.30 
.36 

.20 
.35 
.12 
.95 
.66 
.65 
.43 
.18 
.04 
.01 
.18 
1.03 
.07 
.02 
.36 
.00 
.01 
.26 



Massa- 
chusetts 



3.40 



.43 

5.49 
.01 
.03 
.70 
3.34 
5.33 
3.21 
3.85 
3.82 
4.27 
3.43 
3.23 
4.23 
3.15 
4. .36 
3.72 
3.91 

3.31 

10.85 

4.10 

.56 

.50 

3.86 

8.82 

4.67 

3.28 

1.52 

19.26 

2.11 

3.31 

5.08 

6.52 

.66 

6.13 

6.30 



Rhode 
Island 



0.69 



.06 

.58 
.00 
.00 
.08 
.03 
1.15 
.41 
.57 
.59 
.49 
.49 
.48 
.57 
.45 
.58 
.68 
.48 

.37 
4.89 
.37 
.07 
.06 
.27 
.41 
.46 
.32 
.41 
.19 
.21 
1.00 
1. 28 
1.15 
.04 
.10 



Con- 
necticut 



.32 
.83 
.00 
.00 
.28 
1.62 
2.80 
1.06 
1.46 
1.37 
2.01 
1.32 
1.37 
1.57 
1.07 
1.63 
1.23 
1.73 

.83 

3.41 

2.32 

.19 

.24 

.51 

1.65 

1.44 

1.61 

.32 

.89 

.75 

3.97 

15.12 

4.61 

.38 

4.60 

4.90 



Middle Atlantic 



New- 
York 



11.01 



2.51 
2.65 
.03 
1.27 
3. 15 
11.79 
12.84 
13. 25 
14.17 
13.04 
20.34 
13.63 
12.31 
13.90 
15. 65 
13.69 
12.41 
16.52 

10. 95 

8.75 

36. 31 

1.51 

1.53 

11.32 

15.60 

18.46 

13.26 

6.48 

18.77 

8.60 

6.79 

14.19 

11.99 

4.42 

12.31 

18 76 



New 

Jersey 



.57 
1.80 
.02 
.03 
L68 
3.81 
5.41 
4.08 
3.90 
3.52 
6.01 
3.65 
3.25 
3.53 
3.01 
3.59 
3.14 
5.38 

3.66 
5.40 
8.42 
.14 
.44 
2.69 
4.19 
4.29 
11.76 
9.99 
3.15 
6.46 
3.44 
6.18 
6.72 
2.27 
10 02 
>66 



Penn- 
sylvania 

7.15 



2.30 
.96 

38.78 
5.69 
5.09 
6.94 

10.15 
7.98 
6.90 
7.01 
6.42 
6.75 
6.20 
7.05 
6.69 
7.22 
5.78 
7.93 

7.41 
12.22 
11.95 
2.29 
2 07 
6.24 
8.32 
7.10 
7.11 
11.04 
7.84 
14.88 
21.76 
8.42 
9.60 
2.89 
10.69 
8.30 



Sodbce: Census of Population, 1940. 



Indxistrial Location and National Resources ' 67 

Table 2. — Percentage distribution among the States of employed persons in each major group of economic activity, 1940 — Continued 



AU industries -- 

Industry groups: 

Agriculturp 

Forestry and fishing -- 

Coal mining 

Oil and gas wells. 

Other mines and quarries - — 

Construction _ — 

Manufacturing -■ 

Transportation, communication, etc - 

Trade -- 

Wholesale and retail trade 

Finance, insurance, and real estate 

Business and repair services --. 

Personal services- 

Professional services - 

Amusement, recreation, etc.. - - 

Professional and related services 

Ooveriunent - 

Industry sroup not specified 

Manufacturing subdivided: 

Food and kindred products - --. 

Textile-mill products 

Apparel and other fabricated textile production. 

Logging - 

Sawmills and planing mills - -. 

Furniture, store fixtures, and miscellaneous wooden 

goods 

Paper and allied products 

Printing, publishing, and allied industries 

Chemicals and allied products 

Petroleum and coal products. 

Leather and leather products _ 

Stone, glass, and clay products 

Iron and steel and their products 

Nonfcrrous metals and their products 

Machinery - 

.Automobiles and automobile equipment 

Transportation equipment except automobiles 

Manufacturing industry not specified — 



Division 



East North Central 



Ohio 



5.19 



3.07 
.93 
4.42 
1.83 
2.85 
4.93 
7.41 
.S.SS 
5.29 
5.42 
4.58 
5.32 
4.41 
5.17 
4.85 
5.21 
4.16 
4.72 

4.83 
.88 

3.00 
.54 

1.34 

5.60 
6.92 
6 43 
6.18 
4.31 
4.n 

15.06 

16.27 
6.79 

12.77 
7.75 
3.12 

11.01 



Indiana 



2.45 
.39 
1.88 
.60 
1.22 
2.44 
3.27 
2.58 
2.42 
2. .50 
1.97 
2.49 
1.96 
2.39 
2.07 
2.43 
1.87 
2.65 

3.21 
.72 

2.18 
.60 

1.35 

5.38 
1.92 
2.31 
1.91 
4.00 
.84 
4.79 
5.72 
2.35 
5.39 
6 06 
2.16 
3.09 



Illinois 



3.39 
1.04 
6.55 
5.91 
1.91 
5.70 
7.77 
8.28 
7.54 
7.44 
7.99 
7.64 
5.60 
6.39 
6.75 
6 34 
5.70 
5.51 

10.43 
1.18 
6.25 
.47 
L38 

9.38 

6 47 
n.76 

6 89 

7 72 
7! SO 
6 88 

10.79 
10.66 
14.98 
2.40 
3.57 
7.56 



Michi- 
gan 



2.56 
2.05 
.18 
1.68 
.'i.83 
3.56 
6.62 
3.22 
3.82 
3.92 
3.28 
3.88 
3.15 
3.70 
3.66 
3.70 
3.14 
3.40 

3.55 

.54 

.94 

3.64 

1.67 

6 33 
611 
3.64 
4.33 
1.60 
1.33 
2.76 
4.99 
4.78 
5.67 
61.87 
1.76 
4.34 



Wis- 
consin 



3.27 
1.66 
.01 
.02 
1.20 
1.92 
2. ,55 
1.95 
2.14 
2.22 
1.68 
2.24 
1.73 
2.32 
1.73 
2.39 
1.76 
2.09 

3.49 

.98 

.62 

2.33 

2.53 

3.67 
6.70 
2.25 

.98 

.32 
5.07 

.93 
2.38 
3.09 
4.81 
3.08 

.82 
1.89 



West North Central 



Minne- 
sota 



2.06 



3.37 
.76 
.01 
.02 
3.88 
1.82 
1.10 
2.09 
2.24 
2.29 
1.96 
2.27 
1.73 
2.35 
1.92 
2.41 
1.87 
1.65 

3.20 
.31 
.72 

2.04 
.84 

1.18 
1.50 
2.14 
.86 
.39 
.37 
1.52 
.76 
.66 
1.09 
.40 
.17 
.70 



Iowa 



1.91 



3.69 

.28 

.98 

.04 

..M 

1.76 

.93 

1.82 

1.87 

1.92 

1.49 

2.05 

1.44 

2.01 

1.53 

2.07 

1.35 

2.22 

3.03 
.12 
.36 
.18 
.96 

.84 
.29 

1.63 
.65 
.15 
.21 

1.20 
.66 
.33 

1.47 
.11 
.15 

1.08 



Missouri 



2.87 



3. 6') 
.53 
.76 
.20 
4.00 
2.75 
2.32 
3.18 
3.13 
3.16 
2.98 
3.09 
2.74 
2.75 
2.39 
2.79 
2.27 
2.5S 

3.65 
.22 
3.43 
L55 
1.56 

2.11 
1.77 
3.07 
2.50 
1.76 
9.10 
3.03 
1.61 
1.68 
2.03 
1.80 
1.27 
1.88 



North 
Dakota 



0.44 



1.28 
.06 
.18 
.01 
.02 
.20 
.05 
.33 
.35 
.36 
.21 
.43 
.30 
.46 
.28 
.48 
.40 
.38 

.25 

.01 
.01 
.01 



.19 
.01 
.03 

.02 
.01 
.03 
.03 
.01 



South 
Dakota 



0.45 



1.17 
.14 
.01 
.02 

1.38 
.30 
.09 
.29 
.38 
.40 
.24 
.47 
.29 
.52 
.38 
.54 
.42 
.40 

.46 

.0! 
.20 
.17 

.03 
.01 
.25 
.04 
.05 
.02 
.08 
.01 
.04 
.04 



.02 



Nebraska 



0.96 



1.93 
.19 


.06 
.25 
.83 
.28 

l.OS 
.99 
.99 
.95 

1.09 
.78 

1.07 
.84 

1.10 
.95 
.70 

1.35 
.01 
.08 
.03 
.07 

.22 
.09 
.80 
.18 
.17 
.07 
.25 
.09 
.18 
.18 
.05 
.07 
.20 



1.29 



2.19 
.15 
.45 
5.56 
1.30 
1.21 
.50 
1.60 
1.31 
1.35 
1.05 
1.46 
1.07 
1.43 
1.11 
1.47 
1.33 
1.25 

1.77 
.01 
.29 
.12 
.14 



.34 
1.21 
.62 
2.62 
.05 
.57 
.24 
.33 
.25 
.12 
.57 
.16 











Division 












South Atlantic 






Delaware 


Maryland 


District of 
Columbia 


Virginia 


West Vir- 
ginia 


North 
Carolina 


South 
Carolina 


Georgia 


Florida 


All industries 


0.23 


1.63 


0.68 


2.07 


1.15 


2.68 


1.46 


2. 45 


1.51 


Industry groups: 


.17 
.17 

.01 
.04 
.34 
.28 
.25 
.20 
.20 
.20 
.20 
.28 
.20 
.17 
.20 
.22 
.37 

.23 
.28 
.25 
.04 
.16 
.26 
.08 
.13 
2.11 
.27 
.68 
.07 
.15 
.08 
.06 
.02 
.63 
.22 


.82 
4.05 
.53 
.01 
.59 
1.91 
1.71 
1.87 
1.52 
1.52 
1.58 
1.44 
1.73 
1.51 
1.56 
1.50 
2.63 
2.09 

2.10 

.49 

2.98 

.45 

.73 

1.15 

1.22 

1.75 

3.67 

1.34 

1.20 

1.64 

2.71 

1.46 

.80 

.61 

S.65 

1.22 


.01 
.04 


.01 
.05 
.96 
.21 
.68 
.73 
.70 

1.00 
.61 

1.17 
.88 
.69 
.90 

5.10 
.64 

.29 
.01 
.02 


.03 
.07 
.10 

1.51 
.07 
.03 
.01 
.17 
.48 
.08 
.06 
.02 
.04 
.06 


2.66 
6.65 
3.81 
.02 
1.99 
2.36 
1.77 
2.06 
1.48 
1.53 
1.29 
1.37 
2.35 
1.62 
1.24 
1.67 
3.76 
1.74 

1.44 

2.59 

1.25 

2.90 

4.94 

3.40 

2.20 

1.12 

4.69 

.33 

1.54 

1.36 

.40 

.34 

.18 

.25 

6.69 

2.31 


.95 

.28 

20.10 

2.99 
.97 

1.01 
.87 

1.26 
.80 
.85 
.50 
.79 
.93 

1.03 
.75 

1.07 
.76 

1.05 

.61 
.30 
.26 
2.67 
1.71 
.37 
.57 
.48 
3 45 
.85 
.44 
5.12 
1.47 
.85 
.22 
.02 
.26 
.38 


4.85 
3.03 
.02 
.01 
1.38 
2.28 
3.08 
1.32 
1.58 
1.68 
1.05 
1.55 
2.88 
1.87 
1.45 
1.92 
1.54 
2.29 

1.23 

16.24 

.81 

4.34 

6.30 

6.75 

1.60 

.86 

2.09 

.13 

.36 

1.26 

.17 

.51 

.27 

.14 

.17 

3.06 


3.11 
1.01 


.01 
.65 
1.09 
1.43 
.62 
.77 
.82 
.55 
.69 
1.77 
.95 
.65 
.99 
.99 
.84 

.54 

8.59 

.30 

2.47 

3.62 

1.03 

.86 

.34 

.97 

.13 

.02 

.60 

.05 

.05 

.10 

.03 

1.07 

.30 


4.49 
13.12 
.04 
.02 
1.89 
2.03 
1.94 
1.68 
1.64 
1.72 
1.32 
1.49 
3.56 
1.63 
1.39 
1.66 
2.16 
1.75 

1.65 

7.25 

2.10 

3.17 

5.69 

2.14 

1.-27 

1.03 

2.69 

.48 

.76 

1.69 

.43 

.30 

.40 

.47 

.11 

.43 


1.39 


Fore*itry and fishing 


12.10 









.03 




1.25 




2.13 




.76 


Transportation, o'^TnTniinipf^ti'iTi, oto 


1.46 




1.75 


Wholesale and retail trade 


1.85 




1.42 




1.45 




2.91 




1.46 




2.61 


Professional and related services - - - 


1.34 


Government - - - 


1.62 




I.iiO 


Manufact urine subdivided: 


1.48 


Textile*mill products _ - . 


.04 


Apparel and other fabricated textile production - 


.14 


Logging . - 


4.42 




3.44 




1.81 




.98 




1.00 




1.09 




.17 




.03 




.65 




.11 




.16 


Machinerj' . .- 


.15 




.08 




.86 


Manuract^irinc industry not sirecitied 


1 40 







68 Natloj\al Resources Plaiudng Board 

Table 2. — Percentage distribution among the States of employed persons in each major group of economic activity, 1940 — Continued 



All industries- 



Industry groups: 

Agriculture _ 

Forestry and fishing 

Coal mining _ 

Oil and gas wells _ 

Other mines and quarries -- 

Construction,,- --- 

Manufacturing _ .. . .. 

Transportation, communication, etc. -- --- - - 

Trade _ --._ 

Wholesale and retail trade,.. 

Finance, insurance, and real estate 

Business and repair services 

Pergonal services 

Professional services- 

Amusement, recreation, etc 

Professional and related services 

Government --- 

Industry group not specified 

Manufacturing subdivided: 

Food and kindred products 

Textile-mill products 

Apparel and other fabricated textile production-. 

Logging 

Sawmills and planing mills 

Furniture, store fixtures, and miscellaneous wooden goods. 

Paper and allied products 

Printing, publishing, and allied industries 

Chemicals and allied products.. ._ 

Petroleum and coal products 

Leather and leather products... _ 

Stone, glass, and clay products 

Iron and steel and their products 

Nonferrous metals and their products.. 

Machinery 

Automobiles and automobile equipment 

Transportation equipment except automobiles 

Manufacturing industry not specified 



Division 



East South Central 



West South Central 



Kentucky 



3.69 
.44 
10.37 
1.39 
1.64 
1.73 
.95 
1.71 
1.37 
1.41 
1.03 
1.54 
1.60 
1.39 
1.20 
1.42 
1.48 
1.58 

1.65 
.30 
1.06 
1.38 
1.81 
1.73 
.25 
1.17 
.57 



1.02 
.94 
.86 
.71 
.36 
.18 

1.41 



Tennessee 



2.09 



3.73 
.98 
1.81 
.05 
2.36 
2.08 
1.63 
1.66 
i;59 
1.67 
1.24 
1.55 
2.44 
1.58 
1.12 
1.63 
1.33 
1.59 

1.48 

3.19 

1.82 

2.36 

3.68 

2.65 

.76 

1.30 

4.02 

.35 

1.69 

1.69 

1.02 

2.20 

.32 

.42 

.12 

1.24 



Alabama {Mississippi 



Arkansas 



1.29 



Louisiana Oklahoma Texas 



1.46 



4.22 
2.79 
4.37 

.05 
3.49 
1.40 
1.47 
1.24 
1.13 
1 19 

.86 
1.04 
2.36 
1.26 

.83 
1.31 
1.22 
1.47 

.93 

3.82 

.46 

2.81 

6.26 

.73 

1.13 

.62 

1.34 

.83 

.04 

1.23 

2.72 

.30 

.23 

.06 

.75 

.42 



5.01 

2.46 


.71 
.30 

1 17 
.63 
.70 
.73 
.79 
.40 
.72 

1.66 
.89 
.56 
.93 
.70 

1.01 

.73 
.46 
.93 
3.25 
6.42 
.97 
.64 
.29 
1.04 
.10 
.01 
.79 
.03 
.06 
.07 
.03 
.34 
.12 



3. .58 

1.42 
.31 

1.26 
.96 
.84 
.64 
.80 
.80 
.85 
.49 
.84 

1.16 
.85 
.73 
.86 
.72 

1.13 



2.97 
7.20 

7.18 

.80 
1.70 

.94 
1.62 
1.41 
1.49 
1.02 
1.29 
2.34 
1.41 
1.51 
1.40 
1.31 
1.12 



..'i7 


1.90 


.07 


.24 


.19 


.48 


4.41 


3.83 


.1.80 


4.63 


1.40 


1.08 


.73 


2.45 


.41 


.75 


.40 


1.43 


..58 


4.20 


.01 


.03 


.45 


1.10 


.05 


.21 


.17 


.24 


.07 


.21 


.m 


.09 


.02 


67 


.11 


.36 



2.60 
.19 
.29 
16.21 
1.84 
1.31 
.48 
1.07 
1.47 
1.51 
1.16 
1.63 
1.40 
1. .M 
1.39 
L.W 
1.45 
1.59 

1.11 



1.27 
.80 
.43 
.08 
.99 
.30 

4.69 
.03 
.85 
.22 
.68 
.33 
.06 
.08 
.16 



4.74 



7.60 
2.61 
.12 
30.46 
2.23 
5.38 
2.00 
4.51 
4.86 
5.06 
3.83 
4.94 
5.90 
4.17 
4.14 
4.17 
4.51 
3.62 

3.79 

.64 

1.38 

3.63 

4.88 

2.53 

.85 

2.91 

2.13 

18.47 

.33 

1.95 

.67 

1.41 

1.62 

.51 

.98 

.66 



All industries. 



Industry groups: 

Agriculture 

Forestry and fishing 

Coal mining 

Oil and gas wells ___ 

Other mines and quarries 

Construction 

Manufacturing.. 

Transportation, communication, etc 

Trade 

Wholesale and retail trade 

Finance, insurance, and real estate 

Business and repair services. 

Personal services 

Professional services 

Amusement, recreation, etc 

Professional and related services .* 

Government 

Industry group not specified 

Manufacturing subdivided: 

Food and kindred products 

Textile-mill products 

Apparel and other fabricated textUe production 

Logging __ 

Sawmills and planing mills 

Furniture, store flxtm-es, and miscellaneous wooden goods 

Paper and allied products 

Printing, publishing, and allied industries 

Chemicals and allied products 

Petroleum and coal products 

Leather and leather products 

Stone, gla.es, and clay products ...../. 

Iron and steel and their products.. .. 

Nonferrous metals and their products I.I 

Machinery I 

Automobiles and automobile equipment 

Transportation equipment except automobiles 

Manufacturing industry not specified 



Mountain 



Pacific 



Montana 



0.41 



.71 

.67 
.30 
.44 
5.62 
.43 
.13 
.48 
.37 
.39 
.24 
.45 
.28 
.42 
.37 
.43 
.51 
.34 

.25 


.01 
.72 
.61 
.05 


.25 
.02 
.39 
.01 
.06 
.02 

1.38 
.03 
.01 
.01 
.03 



Idaho 



.69 

.71 
.01 
.01 
3.30 
.35 
.12 
.33 
.32 
.34 
.18 
.39 
.24 
.35 
.37 
.35 
.32 



.27 


.01 

1.46 
.82 
.05 


.22 
.01 
.05 
.01 
.07 
.01 
.28 
.03 
.01 
.07 
.03 



Wyo- 
ming 



0.19 



.30 
.15 
.79 
.96 
.19 
.20 
.04 
.29 
.16 
.16 
.09 
.21 
.14 
.20 
.17 
.20 
.44 
.14 



.01 
.01 



Colo- 
rado 



0.78 



.48 
1.47 
.17 
3.88 
.87 
.34 
.93 
.89 



1.05 
.73 
.97 
.79 
1. 00 
1.03 
.85 



New 
Mexico 



.64 
.27 
.43 
1.68 
1.72 
.41 
.08 
.30 
.27 
.29 
.13 
.34 
.29 
.35 
.26 
.36 
.36 
.35 

.10 
.17 
.01 
.23 
.32 
.06 


.14 
.07 
.14 
.01 
.17 
.01 
.35 
.02 


.01 
.06 



Arizona 


Utah 


0.33 


C.33 


.39 


.34 


.31 


.32 


.01 


.42 


.03 


.03 


6.29 


3.87 


.43 


.39 


.12 


.15 


.36 


.50 


.34 


.37 


.36 


.38 


.20 


.30 


.37 


.39 


.36 


.23 


.40 


.40 


.42 


.37 


.39 


.40 


.41 


.41 


.30 


.33 


.21 


.40 


.20 


.06 


.01 


.08 


.36 


.05 


.31 


.07 


.17 


.09 





.04 


.22 


.31 


.09 


.12 


.02 


.27 


.02 


.02 


.10 


.19 


.03 


.09 


.79 


1.30 


.03 


.05 


.01 


.02 


.01 


.01 


.03 


.07 



Nevada 



Wash- 
ington 



.08 
.06 


.01 

3.09 
.15 
.02 
.17 
.08 
.09 
.05 
.10 
.08 
.11 
.28 
.08 
.13 
.12 






.01 
.02 
.01 


.05 
.01 



1.00 
4.80 
.50 
.04 
1.35 
1.82 
1.24 
1.65 
1.63 
1.54 
1.46 
1.62 
l.U 
1.44 
1.45 
1.44 
2.06 
1.20 

1.53 
.06 
.29 
15.11 
7.97 
1.42 
2.93 
1.24 
.42 
.19 
.09 
.62 
.41 
.85 
.30 
.14 
4.62 
.30 



Oregon 



0.86 



.85 
1.99 
.01 
.02 
1.42 
1. 01 
.77 
.99 
.96 
.98 
.80 
1.07 
.74 
.94 
.94 
.94 
.85 



.21 
.19 
11.18 
6.40 
1.24 
1.09 
.81 
.19 
.13 
.08 
.29 
.22 
.24 
.21 
.08 
.17 
.25 



Cali- 
fornia 



5.5» 



3.17 
7.19 
.02 
13.33 
10.45 
7.38 
3.94 
6.42 
7.48 
7.32 
8.13 
7.85 
5.98 
7.48 
15.39 
6.54 
8.52 
4.69 

7.09 
.51 
3.00 
3.42 
4.21 
6.11 
2.39 
6.37 
4.07 

10.88 
.99 
4.66 
2.73 
3.06 
3.01 
2.20 

16.69 
2.84 



Industrial Location and National Resources 



69 



Table 3. — Percentage distribution among industry groups of employed persons in the United States and each State, 1940 



AU industries— percent of United States total 

Industrial groups — percent of each area total: 

Agriculture - -- 

Forestry and fishing _ 

Coal mining 

Oil and gas wells - -- 

Other mines and quarries 

Construction — 

Manufacturing... 

Transportation, communication, etc. 

Trade 

Wholesale and retail trade... - 

Finance, insurance, and real estate — 

Business and repair services 

Personal services 

Professional services... 

Amusement, recreation, etc 

Professional and related services 

Government — 

Industry group not specified 

Manufacturing subdivided; 

Food and kindred products .' 

Textile-mill products 

Apparel and other fabricated textile production 

Logging 

Sawmills and planing mills 

Furniture, store fixtures, and miscellaneous wooden goods 

Paper and allied products 

Printing, publishing, and allied industries.- 

Chemicals and allied products. 

Petroleum and coal products _.. 

Leather and leather products.. 

Stone, glass, and clay products : 

Iron and steel and their products.. 

Nonterrous metals and their products 

Machinery 

Automobiles and automobile equipment _ 

Transportation equipment except automobiles 

Manufacturing industry not specified 



United 
States 
basic 

pattern 



18.54 

.23 

1.17 

.41 

.45 

4.55 

23.41 

6.89 

21.85 

16.69 

3.25 

1.91 

8.88 

8.23 

.88 

7.35 

3.88 

1.53 

2.42 

2.59 

1.73 

.31 

.96 

.8(1 

.73 

1.40 

.97 

.45 

.81 

.75 

2.80 

.62 

2.37 

1.27 

.68 

1.76 



Division 



New England 



Maine 



13.07 

1.16 

.01 



.19 

4.32 

32.84 
6.16 

18.81 

14.98 
1.87 
1.96 
9.43 
7.98 
.64 
7.34 
4.06 
1.96 

1.86 

8.36 

.55 

2.16 

1.51 

1.67 

5.01 

.80 

.19 

.05 

6.28 

.27 

.60 

.05 

1.25 

.03 

1.70 

.50 



New 
Hamp- 
shire 



0.39 



8.77 

.36 





.18 

5.12 

39.61 

5.09 

18.10 

14.17 

2.00 

1.93 

9. 16 

8.54 

.58 

7.96 

3.27 

1.91 

1.13 
9.03 
.31 
1.60 
1.56 
2.21 



3.66 

1.11 

.14 

.02 

12.35 

.52 

.72 

.11 

2.08 

.03 

1.36 

1.57 



Vermont 



0.28 



24.46 
.21 



1.16 
4.47 

21.96 
6.28 

17.12 

13.05 
2.01 
2.00 
9.86 
8.32 
.49 
7.83 
4.16 
1.99 

1.72 

3.27 

.73 

1.08 

2.31 

1.87 

1.14 

.91 

.14 

.01 

.53 

2.77 

.71 

.05 

3.06 

.01 

.02 

1.63 



Massa- 
chusetts 



3.40 



2.34 
.38 


.09 
4.47 

36.76 
6.52 

24. 75 

18.74 
4.08 
1.93 
8.44 

10.24 
.81 
9.43 
4.25 
1.75 

2.36 
8.27 
2 12 
"!05 

.14 

.91 
1.89 
1.92 

.94 

.20 
4.57 

.46 
2.72 

.93 
4.56 

.25 
1.22 
3.26 



Rhode 
Island 



Connecti- 
cut 



59 



1.90 

.23 

.01 



.06 

4.93 

45.81 

4.81 

21.22 

16.87 

2.74 

1.61 

7.34 

7.94 

.67 

7.23 

4. .10 

1.24 

l.Sl 
21.61 

1.10 
.04 
.10 
.36 
.50 

1.10 
.63 
.31 
.26 
27 

4^79 

1.35 

4.66 
.08 
.11 

7.16 







.08 

4.89 

43.46 

4.85 

21.15 

15.14 

4.34 

1.67 

8.06 

8.58 

.62 

7.96 

3.17 

1.75 

1.33 

5.87 

2.66 

.04 

.16 

.34 

.80 

1.33 

1.04 

.09 

.47 

.37 

7.36 

6.21 

7.17 

.32 

2.07 

6.71 



Middle Atlantic 



New 
York 



11.01 



4.23 

.06 



.05 

.13 

4.87 

27.29 
8.30 

28.13 

19.76 
6.00 
2.37 
9.92 

10.37 
1.24 
9.13 
4.38 
2.29 

2.41 

2.06 

5.70 

.04 

.13 

.82 

1.03 

2.34 

1.17 

.26 

1.38 

.68 

1.73 

.80 

2.68 

.51 

.76 

2.99 



New 
Jersey 



3.47 



3.06 

.12 

.01 



.22 

6.00 

36.45 

8.09 

24.53 

16,90 

5.62 

2.01 

8.30 

8.36 

.76 

7.60 

3.61 

2.36 

2.56 

4.03 

4.19 

.01 

.12 

.62 

.88 

1.72 

3.30 

1.28 

.73 

1.39 

2.77 

1.10 

4.69 

.83 

1.96 

4.38 



Pennsyl- 
vania 



5.96 

.03 

6.33 

.32 

.32 

4. 42 

33.21 

7.69 

21.08 

16.36 

2.92 

1.80 

7.70 

8.10 

.68 

7.42 

3.14 

1.69 

2.61 
4.43 
2.89 
.10 
.28 
.70 
.84 
1.39 
.97 



1.65 
8.51 

.73 
3.19 

.52 
1.01 
2.04 



All industries— percent of United States total 

Industrial groups— percent of each area total: 

Agriculture 

Forestry and fishing 

Coal mining... , 

Oil and gas wells. 

Other mines and quarries , 

Construction. _ , 

Manufacturing 

Transportation, communication, etc 

Trade 

Wholesale and retail trade 

Finance, insurance, and real estate.. 

Business and repair services. 

Personal services 

Professional services.. 

Amusement, recreation, etc 

Professional and related services 

Government 

Industry group not specified 

Manufacturing subdivided; 

Food and kindred products 

Textile-mill products _ 

Apparel and other fabricated textile production 

Logging 

Sawmills and planing mills 

Fimiiture, store fixtures, and miscellaneous wooden 

goods 

Paper and allied products... _ 

Printing, publishing, and allied industries 

Chemicals and allied products 

Petroleum and coal products 

Leather and leather products 

Stone, glass, and clay products 

Iron and steel and their products 

Nonferrous metals and their products 

Machinery 

Automobiles and automobile equipment 

Transport.'ition equipment except automobiles 

Manufacturing industry not specified 



Division 



East North Central 






West North Central 






Ohio 


Indiana 


Illinois 


Michi- 
gan 


Wiscon- 
sin 


Miime- 
sota 


Iowa 


Missouri 


North 
Dakota 


South 
Dakota 


Nebraska 


Kansas 


5.19 


2.55 


6.36 


4.04 


2.35 


2.06 


1.91 


2.87 


0.44 


0.46 


0.96 


1.29 


10.97 


17.79 


9.88 


11.72 


25.78 


30.30 


36.78 


23.65 


63.38 


48.06 


37.37 


31.41 


.04 


.03 


.04 


.12 


.16 


.08 


.03 


.04 


.03 


.07 


.06 


.03 


.99 


.86 


1.20 


.05 








.60 


.31 


.47 


.03 





.41 


.14 


.10 


.38 


.17 








.01 


.03 


.01 


.01 


.02 


1.75 


.25 


.21 


.13 


.65 


.23 


.84 


.13 


.62 


.02 


1.36 


.12 


.45 


4.32 


4.36 


4.08 


4.01 


3.72 


4.02 


4.20 


4.36 


2.03 


3.04 


3.92 


4.26 


33.40 


30.01 


28.58 


.■!8.36 


25.48 


12.46 


11.44 


18.88 


2.50 


4.53 


6.86 


9.09 


7.41 


6.96 


8.97 


5.60 


5.73 


7.00 


6.57 


7.63 


6.07 


4.37 


7.79 


8. 52 


22.25 


20.71 


25.89 


20.68 


19.94 


23.72 


21.38 


23.78 


17.14 


ia38 


22.57 


22.19 


17.43 


16.34 


19.61 


16.21 


15.79 


18.64 


16.80 


18.36 


13.71 


14.67 


17.19 


17.38 


2.86 


2.50 


4.08 


2.63 


2.33 


3.08 


2.53 


3.36 


1.67 


1.73 


3.20 


2 65 


1.96 


1.87 


i.30 


L84 


1.82 


2.10 


2.05 


2.06 


1.86 


1.98 


218 


216 


7.55 


6.83 


7.82 


6.92 


6.56 


7.46 


6.70 


8.47 


6.09 


5.68 


7.18 


7.32 


8.18 


7.70 


8.25 


7.62 


8.14 


9.39 


8.64 


7.88 


8.43 


9.49 


9.16 


9.12 


.82 


.71 


.93 


.79 


.65 


.82 


.70 


.73 


.55 


.74 


.76 


.75 


7.36 


6.99 


7.32 


6.73 


7.49 


8.67 


7,94 


7.15 


7.88 


8.75 


8.40 


a. 37 


3.11 


2.S5 


3.47 


3.02 


2.90 


3.62 


2.76 


3.07 


3.53 


3.63 


3.85 


4.00 


1.39 


1.59 


1.32 


1.28 


1.36 


1.22 


1.77 


1.37 


1.30 


1.34 


1.11 


1.47 


2.25 


3.05 


3.97 


2.13 


3.60 


3.76 


3.84 


3.07 


1.39 


2 49 


3.40 


3.31 


.44 


.73 


.48 


.35 


1.08 


.38 


.16 


.20 


01 


.02 


.03 


.02 


1.00 


1.48 


1.70 


.40 


.46 


.60 


.33 


2.06 


.03 


.03 


.14 


.40 


.03 


.06 


.02 


.28 


.31 


.31 


.03 


.17 


.01 


.13 


.01 


.03 


.25 


.51 


.21 


.40 


1.04 


.39 


.49 


.62 


.02 


.36 


.07 


.11 


.86 


1.69 


1.18 


1.25 


1.25 


.46 


.35 


.69 


.03 


.06 


.19 


.22 


.97 


.55 


.74 


l.IO 


2.07 


.53 


.11 


.45 





.01 


.07 


.19 


1.73 


1.26 


2.68 


1.26 


1.34 


1.45 


1.19 


1.49 


.50 


.76 


1.16 


1.31 


1.16 


.73 


1.05 


1.04 


.40 


.40 


.33 


.85 


.02 


.09 


.18 


.46 


.37 


.70 


.64 


.18 


.06 


.08 


.03 


.27 


.03 


.05 


.08 


.90 


.73 


.27 


.99 


.27 


1.74 


.14 


.09 


2.56 


.01 


.03 


.06 


.03 


2.16 


1.40 


.81 


.51 


.30 


..■iS 


.47 


.79 


.04 


.14 


.19 


.33 


8.76 


6.27 


4.74 


3.46 


2.84 


1.04 


.96 


1.67 


.04 


.04 


.25 


.53 


.81 


.57 


1.04 


.73 


.81 


.20 


.11 


.38 


.04 


.05 


.11 


. 16 


6.84 


6.02 


5.59 


3.33 


4.86 


1.26 


1.83 


1.68 


.14 


. 19 


.44 


.45 


1.90 


3.03 


.48 


19.49 


1.67 


.25 


.07 


.80 


.03 


.01 


.07 


.12 


.41 


.57 


.38 


.29 


.24 


.06 


.05 


.30 








.05 


.30 


3.72 


2.13 


2.08 


1.89 


1.41 


.60 


.99 


1.15 


.07 


.08 


.37 


.22 



Source: Ctmuaof Populaiion,l9i0. 



70 National Resources Planning Board 

Table 3. — Percentage distribution among industry groups of employed persons in the United Stales and each State, 1940 — Continued 



Division 



South Atlantic 



Delaware 



Maryland 



District 
Columbia 



Virginia 



West 
Virginia 



North 
Carolina 



South 
Carolina 



Georgia 



rioria. 



All industries— percent of United States total.. 



Industrial groups — percent of each area total: 

Agriculture _ - 

Forestry and fishing..* 

Coal mining --- 

Oil and gas wells.. _-_ ... 

Other mines and quarries. 

Construction 

Manufacturing 

Transportation, communication, etc 

Trade... - 

Wholesale and retail trade 

Finance, insurance, and real estate 

Business and repair services 

Personal services 

Professional services - 

.\musement, recreation, etc -._ 

Professional and related services 

Government 

Industry group not specified _._ 

Manufacturing: subdivided: 

Food and kindred products 

Textile-mill products- 

Apparel and other fabricated textile production 

Logging 

Sawmills and planmg mills 

Furniture, store fixtures, and miscellaneous wooden goods.. 

Paper and allied prolucts ._. 

Printing, publishing, and allied industries 

Chemicals and allied products 

Petroleum and coal products 

Leather and leather products ,._ - _.. 

Stone, glass, and clay products 

Iron and steel and their products — 

Nonferrous metals and then products. 

Machinery 

Automobiles and automobile equipment 

Transportation equipment except automobiles 

Manufacturing industry not specified 



13.71 
.17 


.01 

.09 

6.79 

28. 8S 

7.71 

18.86 

14.36 

2.80 

1.70 

10.32 

7.19 

.64 

6.55 

3.75 

2.51 

2.47 

3.18 

1.93 

.06 

.68 

.92 

.25 

.79 

9.03 

.53 

2.40 

.23 

1.92 

.22 

.60 

.11 

1.86 

1.72 



9.92 
.61 
.41 



.17 
5.69 

26.12 
8.45 

21.77 

16.61 
3.36 
1.80 

10.01 
8.11 
.89 
7.22 
6.66 
2.08 

3.33 
.83 

3.37 
.09 
.46 
.60 
.58 

1.59 

2.34 
.39 
.63 
.80 

4.96 
.59 

1.24 
.42 

2.50 

1.40 



2.68 



2.45 



.17 

.01 





.03 

6.39 

7.20 

6.84 

23.46 

17.02 

4.73 

1.71 

15.17 

10.54 

.88 

9.66 

28.97 

1.21 

1.03 
.02 
.05 


.04 
.09 
.10 

3.08 
.10 
.02 
.01 
.19 

1.97 
.07 
.19 
.03 
.04 
.16 



23.87 
.74 

2.15 


.43 

5.20 
20.11 

6.87 
15.69 
12.39 

2.03 

1.27 
10.11 

6.47 
.53 

5.94 

7.07 

1.29 

1.69 

3.25 

1.05 

.44 

2.30 

1.32 

.77 

.76 

2.21 

.07 

.60 

.49 

.54 

.10 

.21 

.16 

2.19 

i.96 



15.28 
.06 

20.40 

1.06 

.38 

3.99 

17.64 
7.54 

15.13 

12.40 
1.42 
1.31 
7.17 
7.39 
.57 
6.82 
2.59 
1.39 

1.08 
.68 
.39 
.73 

1.43 
.26 
.36 
.59 

2.92 
.33 
.31 

3.32 

3.59 
.46 
.46 
.02 
.15 
.58 



33.58 

.26 

.01 



- .23 

3.89 

26.93 

3.40 

12.87 

10.48 

1.28 

1.11 

9.55 

6.74 

.47 

6.27 

2.23 

1.30 

1.12 

15.72 

.52 

.61 

2.27 

2.02 
.43 
.45 
.76 
.02 
.11 
.35 
.18 
.12 
.24 
.07 
.04 

2.01 



39.45 

.16 





.20 

3.38 

22.83 

2.90 

11.48 

9.36 

1.22 

.90 

10.76 

6.35 

.39 

4.96 

2.62 

.87 

.89 
15.20 
.36 
.53 
2.38 
.56 
.43 
.33 
.65 
.04 
.01 
.31 
.09 
.02 
.16 
.03 
.50 



33.91 

1.22 

.02 



.34 

3.76 

18.53 
4.71 

14.63 

11.71 
1.75 
1.17 

12.89 
6.47 
.50 
4.97 
3.42 
1.09 

1.64 

7.66 

1.48 

.40 

2.24 

.70 

.38 

.ii9 

1.07 

.09 

.25 

.51 

.49 

.08 

.39 

.24 

.03 

.31 



17.09 
1.83 


.01 
.37 
6.40 

11.73 
6.65 

25.24 

20.37 
3.04 
1.83 

17.07 
7.94 
1.46 
6.49 
4.16 
1.61 

2.38 
.06 
.15 
.92 

2.19 
.95 
.47 
.92 
.70 
.05 
.02 
.32 
.21 
.07 
.24 
.07 
.39 

1.63 



Division 



East South Central 



Kentucky 



Tennessee 



Alabama Mississippi 



West South Central 



Arkansas 



Louisiana 



Oklahoma 



Texas 



All industries— l)ercent of United States total. 



2.09 



1.98 



1.61 



1.29 



1.71 



1.46 



Industrial groups— percent of each area total: 

Agriculture 

Forestry and fishing. 

Coal mining _ 

Oil and gas wells... 

Other mines and quarries.. 

Construction , 

Manufacturing 

Transportation, communication, etc 

Trade .. 

Wholesale and retail trade. 

Finance. ia<;urancp. and real estate 

Business and repair services 

Personal services 

Professional services. 

.\rausement, recreation, etc 

Professional and related services 

Government 

Industry group not specified 

Manufacturing sub-divided: 

Food and kindred products 

Text ileni ill products 

Apparel and other fabricated textile production 

Logging - 

Sawmills and planing mills 

Fiu-niture, store fixtures, and miscellaneous wooden goods. 

Paper and allied products 

Printing, publishtnc. and allied industries 

Chemicals and allied products. 

Petroleum and coal products 

Leather and leather products 

Stone, glass, and clay products 

Iron and steel and their products- 

Nonferrous metals and their products 

Machinery 

Automobiles and automobile equipment 

Transportation equipment except automobiles 

Manufacturing industry not specified 



36.47 

.05 

6.45 

.30 

.39 

4.20 

11.89 

6 29 

15 91 

12.55 

1.79 

1.57 

7.57 

6.10 

.56 

5.54 

3.07 

1.29 

2.13 
.41 
.98 
.23 
.93 
.74 
.10 
.87 
.30 
.23 
.37 
.41 

1.40 
.28 
.90 
.24 
.06 

1.32 



33.13 
.11 

1.01 

.01 

.51 

4.64 

18.31 
5.45 

16 70 

13.34 
1.93 
1.43 

10 37 
6.21 
.47 
5.74 
2.47 
1.16 

1.72 

3.97 

1.51 
.35 

1.70 
.98 
.26 
.87 

1.88 
.07 
.66 
.60 

1.37 
.65 
.36 
.27 
.04 

1.05 



39.57 

.32 

2.58 

.01 

.79 
3.22 

17.39 
4.30 

12.48 

10.06 
1.42 
1.00 

10.59 
S.22 
.37 
4.85 
2.39 
1.13 

1.14 

6.00 
.40 
.44 

3.06 
.29 
.41 
.44 
.66 
.19 
.02 
.46 

3.85 
.09 
.27 
.04 
.26 
.37 



57.68 

.35 



.18 

.08 

3.32 

9.18 

3.00 

9.86 

8.20 

.81 

.85 

9.14 

4.56 

.31 

4.25 

1.69 



1.10 
.74 
.99 
.63 

3.25 
.48 
.24 
.26 
.63 
.03 


.37 
.06 
.02 
.10 
.02 
.14 
.13 



51.39 
.25 
.28 
.40 
.33 
2.95 
9.88 
4.27 
13.48 
11.01 
1 22 
l!25 
7.88 
5.39 
.50 
4.89 
2.18 
1.33 

1.07 
.15 
.26 
1.07 
4.33 
.87 
.41 
.45 
.30 
.20 
.01 
.26 
.11 
.08 
.13 
.05 
.01 
.IS 



32.25 
.96 



1.71 
.21 

4.53 
12.85 

6.55 
17.99 
14.60 

1.94 

1.45 
12.16 



6.02 
2.97 
1.00 

2.70 
.36 
.49 
.70 

2.61 
.51 

1.04 
.61 
.82 

1.09 
.01 
.48 
.34 
.09 
.29 
.06 
.27 
.37 



33.11 

.03 

.23 

4.52 

.56 

4.08 

7.70 

5 06 

21.96 

17.24 

2.58 

2.14 

8.52 

8.69 

.83 

7.86 

3.86 

1.66 

1.84 
.14 
.09 
.27 

.sr 

.24 
.04 
.96 
.20 
1.43 
.01 
.44 
.42 
.29 
.54 
.05 
.04 
.18 



29.76 

.13 

.03 

2.61 

.21 

5.18 

9.90 

6.56 

22.46 

17.83 

2.63 

2.00 

11.07 

7.24 

.77 

6.47 

3.70 

1.16 



1.94 
.35 
.50 
.24 
.99 
.43 
.13 
.86 
.44 

1.74 
.06 
.31 
.40 
.18 
.81 
.14 
.14 
.25 



Industrial Location and National Resources 71 

Table 3. — Percentage distribution among industry groups of employed persons in the United States and each SlcUe, 1940 — Continued 





Division 










Mountain 










Pacific 






Montana 


Idaho 


Wyo- 
ming 


Colo- 
rado 


New 
Mexico 


Arizona 


Utah 


Nevada 


Wash- 
ington 


Oregon 


Cali- 
fornia 




0.41 


0.35 


0.19 


0.77 


0.31 


0.33 


0.33 


0.09 


1.36 


0.86 


' 5.69 






Industrial groups— percent of each area total: 


31.84 

.37 

.84 

.43 

6.02 

4.76 

7.41 

8.02 

19.80 

15.80 

1.90 

2.10 

6.01 

8.42 

.79 

7.63 

4.78 

1.28 

1.50 
.02 
.04 
.55 

1.21 
.09 
.01 
.86 
.04 
.42 
.02 
.11 
.12 

2.08 
.20 
.02 
.01 
.11 


36.65 

.46 

.02 

.02 

4.21 

4.53 

7.92 

6.57 

20.17 

16.36 

1.69 

2.12 

6.04 

8.29 

.93 

7.36 

3.56 

1.56 

1.89 
.02 
.04 
1.30 
2.26 
.12 
.01 
.89 
.03 
.07 
.02 
.16 
.06 
.50 
.23 
.02 
.13 
.17 


29.39 
.17 

4.78 

2.04 

.44 

4.79 

6.32 

10.39 

17.81 

14.26 

1.48 

2.07 

6.49 

8.45 

.79 

7.66 

8.82 

1.11 

1.22 
.01 
.03 
.28 
.48 
.15 


.74 
.03 

1.72 
.02 
.26 
.06 
.04 
.17 
.01 
.04 
.06 


21.03 

.14 

2.21 

.09 

2.24 

5.11 

10.17 
8.29 

25.17 

19.26 
3.31 
2.60 
8.38 

10.35 

.89 

9.46 

5.16 

1.67 

2.79 
.05 
.20 
.12 
.32 
.21 
.10 

1.24 
.29 
.18 
.12 
.47 

1.98 
.32 
.55 
.12 
.02 

1.08 


32.01 

.20 

1.61 

2.20 

2.49 

5.96 

0.40 

6.63 

18.92 

16. 42 

1.41 

2.09 

8.16 

9.26 

.73 

8.53 

4.47 

1.70 

.81 
1.43 
.04 
.23 
1.00 
.16 

.62 
.22 
.20 
.02 
.41 
.08 
.69 
.12 
.01 
.02 
.33 


21.53 
.21 

.02 
.03 
8.47 
5.88 
8.39 
7.62 
22. .39 
18.30 
1.98 
2.U 
9.53 
9.82 
1.11 
8.71 
4.82 
1.38 

1.63 
1.56 
.03 
.34 
.89 
.41 
.01 
.92 
.26 
.02 
.04 
.22 
.22 
1.48 
.24 
.04 
.02 
.18 


19.17 
.22 
1.49 
.04 

6.26 
5.40 
10.96 
10.47 
24.01 
19.41 
2.96 
2.24 
6.05 
9.91 
.99 
8.92 
4.88 
1.65 

2.94 
.50 
.41 
.06 
.21 
.23 
.08 

1.32 
.36 
.36 
.04 
.43 
.77 

2.44 
.34 
.07 
.02 
.38 


16.26 
.14 


.02 

16.08 

7.37 

4.50 

12.46 

20.21 

10.43 

1.64 

2.14 

8.04 

9.42 

2.67 

6.75 

5.53 

1.96 

.97 
.01 
.04 
.03 
.23 
.06 
.01 
.77 
.16 
.02 
.02 
■ .14 
.04 
1.78 
.11 
.02 
.01 
.09 


13.74 
.82 
.43 
.01 

.45 
6.16 
21.56 
8.48 
24.94 
19.11 
3.53 
2.30 
7.33 
8.79 
.94 
7.85 
5.9i 
1.36 

2.75 

.12 

.37 

3.52 

5.71 

.85 

1.68 

1.29 

.31 

.06 

.05 

.34 

.84 

.39 

.53 

.13 

2.33 

.39 


1&30 

.53 

.01 

.01 

.74 

5.31 

20.93 

7.90 

24.29 

18.91 

3.01 

2.37 

7.60 

8.97 

.96 

8.01 

3.84 

1.58 

2.48 

.62 

.38 

4.06 

7.15 

1.15 

.92 

1.31 

.21 

.06 

.08 

.25 

.73 

.17 

.68 

.12 

.13 

.51 


10.61 


Forestry and fishing 


.29 









.97 




.84 




6.01 




16.51 




7.91 




29.26 


Wholesale and retail trade 


21.84 




4.73 


Business and repair services - 


2.69 


Personal services -- 


9.50 
11.00 




2.41 




8.59 




5.91 




1.28 


Manufacturintj sub-divided: 


3.07 




.24 


Apparel and other fabricated textile production 


.93 




.19 




.73 


Furniture, store fixtures, and miscellaneous wooden goods.-- 


.73 
.31 




1.59 




.71 




.87 




.14 




.62 




1.36 




.34 




1.28 




.50 




2.01 




.89 







Figure 44 shows the distribution of the ten and one- 
half million gainful workers engaged in agriculture at 
the time of the Census of Population in 1930. A large 
proportion of the Nation's farmers were located in the 
Southern States while greatest densities of agricultural 
workers per square mile were found in some of the 
bottom lands of the Mississippi River in Arkansas and 
Southern Louisiana, and around large urban centers. 

The uneven distribution of agricultural employment 
and the extent of concentration in particular areas are 
indicated in tables 2 and 3. Those employed in agri- 
culture wei'e concentrated in 7 States, shown in the 
accompanying tabulation, which included onlj' 17 per- 
cent of the total labor force : 



state 


Percentage of 

workers in U. S. 

agriculture 


Percentage of 

worliers in all 

U. S. industries 




Percent 


Rank 


Percent 


Rank 


Texas 


7.6 
5.0 
4.9 
4.5 
4.2 
3.7 
3.7 

33.6 


1 
2 
3 
4 
6 
6 
7 


4.7 
1.6 
2.7 
2.5 
2.0 
2.1 
1.9 


6 


Mississippi .. 


22 


North Carolina 


11 


Georgia 


13 


Alabama 


18 




15 


Iowa 


19 






Total 


17.5 











Agriculture plays a strikingly important role in the 
economies of some States. Wliereas in the country as 
a whole 18.5 percent of all workers specialized in agri- 
culture, in 1940, the proportion for Mississippi was as 
high as 57.7 percent. North Dakota 53.4 percent, Ar- 
kansas 51.4 percent. South Dakota 48.1 percent, and 
Alabama 39.6 percent. The States with proportions 
higher than the national average are indicated in figure 
45. Rhode Island is at the opposite extreme with only 
1.9 percent of its workers devoted to agriculture, fol- 
lowed by Massachusetts with 2.3 percent and New 
Jersey with 3.1 percent. 

The distribution of agricultural production among 
various products unfortunately cannot be measured in 
terms of the composition of the agricultural labor force 
with currently available data. The chief regionalized 
tyi:)es-of-farming in the United States are shown in 
figure 46, adapted from two classifications of regions by 
the Bureau of Agricultural Economics.^ In addition 
to relative income by type-of-farming, the BAE con- 
sidered these factors: variation in soils, climate and 
surface features, crop and livestock combinations, rela- 

» See map "Type of Farming Areas in the D. S. 1930," prepared by 
Bure.iu of Cen.sus in cooperation with the B.VE. A Oeographic Sum- 
mary of American Agriculture Based Lurgelj/ or% the Census, Misc. Pub. 
No. 105, Figure 1. 



72 



National Resources Planning Board 



:<.-iy 



PERSONS ENGAGED IN AGRICULTURE 





UNITED STATES TOTAL 

10,482,000 ENGAGED IN AGRICULTURE OR 

21.5 PERCENT OF ALL GAINFULLY EMPLOYED 



lA 



U. S. DEPARTMENT OF AGRICULTURE 



NEG. 32261 



BUREAU OFAGRICULTURAL ECONOMICS 



Figure 44 



tive productivity, market locations, and other minor 
factors. 

A somewhat more precise picture of regional spe- 
cialization in particular types of farming can be ob- 
tained from data on value of farm produce gathered 
by the agricultural census. Table 4 shows the dis- 
tribution in 1939 of total value of produce in each 
State and in the United States among 10 types of prod- 
ucts. Each farm was classified according to its major 
source of income. If 2 or more of the 10 value of 
products groups were exactly equal the farm was 
classified according to the item predominating as major 
source of income in that locality. 

For the United States as a whole, the largest propor- 
tion of total value of produce, nearly 39 percent, was 
attributed to field cro^Ds, followed by 24 percent in live- 
stock and 16 percent in dairy products. Forest prod- 
ucts had the lowest percentage of 0.3. Among the 
States, the highest proportions from any one source 
occurred in field crops which accounted for as much as 
81 percent in South Carolina and 77 percent in North 
Carolina (cotton) and in dairj' products with 78 per- 
cent in Vermont. No State had as diversified agricul- 



tural production as the United States as a whole; only 
three States, namely, California, Michigan, and Oregon, 
had less than 30 percent of total value of farm produce 
attributed to one source, •while 21 States derived at 
least 50 percent from one source. 

Wliile development of particular types of farming in 
an area is conditioned by natural attributes, including 
soils, climate, topography, etc., the use of the land is 
affected also by the pressure of economic forces. Here 
it is important to note how the proximity of manu- 
facturing activity and the urbanization of an area 
can affect the nature of agricultural production. The 
operation of this "market" factor is exemplified in the 
agricultural pattern developed in the Northeast region 
of the United States, which is predominantly a manu- 
facturing area but which has some land above the na- 
tional average in productivity and which accounts for 
roughly 20 percent of all gainful workers in agricul- 
ture. The farms of this area specialize for the most 
part in the production of bulky or perishable products 
such as dairy products, vegetables, small fruits, poultry, 
eggs, and so forth. Figure 46 reveals a belt of such spe- 
cialized farminjr stretchine; in the North from central 



Industrial Location and National Resources 



73 



STATES WITH PROPORTIONS GREATER THAN THE NATIONAL AVERAGE OF 
EMPLOYED WORKERS IN SPECIFIED activities: — 1940 




PREPAfitO IN OFFICt OF THE NATrON*t HESOUHCtS PUNNING BOARD 



Figure 45 



Minnesota to the Atlantic coast. Similar specialization 
occurs around other urban areas. 

While these aFeas had the resources necessary for 
dairying, truck farming, and poultry raising, speciali- 
zation in this type of agriculture was determined not 
by resources alone but by the proximity of the manu- 
facturing belt and the necessity of supplying fresh 
food products daily to large agglomerations of popu- 
lation. Every city has a similar supply area at its 
outskirts if physically possible, and in the Northeast, 
the predominantly urban character of the region has 
diverted- almost its entire agricultural activity to this 
type of farming- 
Other Extractive Industries 

Even more than farming, the location of the extrac- 
tive industries is determined by the location of the 
resources they exploit. The areas of the United States 
where mining is an important economic activity are 
indicated on figure 47. The concentration of extrac- 
tive workers in the Appalachian region, around Bir- 
mingham, Ala., and in southern Illinois and southern 
Indiana is accounted for largely by the coal fields in 
these areas, while the Lake Superior region is an iron- 
mining area with copper on the northernmost penin- 



sula. Areas of concentration in Oklahoma, Texas, and 
southern California are due primarily to the produc- 
tion of oil and gas while those in Montana, Arizona, 
and Utah indicate copper and other nonferrous metal 
mining. The nature of extractive activity in other 
areas indicated can be checked in detail against maps 
in Chapters 1 and 2 which show the location of mineral 
deposits. 

The concentrated distribution of the extractive in- 
dustries requires little explanation, since mineral de- 
posits can be worked only where they exist and they 
exist in relatively few locations. The degree of ex- 
ploitation of these natural resources varies, however, 
with character of the deposits and their proximity to 
market or processing plants. 

In 1940 the employed workers engaged in coal mining 
constituted 1.2 percent of the Nation's total labor force, 
but in West Virginia the percentage reached 20.4, in 
Kentucky 6.5, and in Pennsylvania 6.3. The working 
force in oil and gas production amounted to only 0.4 
percent of the national total, and the highest State per- 
centages occurred in Oklahoma with 4.5. Texas with 
2.6, and New Mexico with 2.2. In 21 States, less than 
one-tenth of 1 percent of all employed workers were 
engaged in coal mining and oil and gas wells combined. 
In other mines and quarries, the national proportion 



74 



National Resources Planning Board 




Industi-ial Location and National Resources "tk 

Table 4. — Value of farm products sold, traded, or used hy farm households classified by major source of income, by States, 1939 



Major source of income groups— Percentage of total value of farm produce of State derived from- 



Livestoefc 



United States. 



Alabama 

Arizona 

Arkansas __. 

California ._. 

Colorndo 

Connecticut 

Delaware 

Florida 

Georgia 

Idiho -.. 

niinois 

Indiana 

Iowa 

Kansfls 

Kenturky 

Louisiana 

Maine- 

Maryland 

Massachusetts 

Michigan 

Minni'snta- 

Mississippi 

Missouri- 

Montana 

Nebraska 

Nevada. 

New Hampshire.. 

New Jersey 

New Mexico 

New York... 

North Carolina... 
North Dakota ... 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina... 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

Wpst Virginia 

Wisconsin 

Wyoming 



23.50 



42, 
65, 
37. 
20, 

2, 

2. 

5. 

2. 
14. 
27. 

2. 
42. 
38. 
55. 
66. 

4, 

2. 
4S, 

3, 

1. 
14 
31. 
21 
23. 

7. 

1. 

1. 
60. 
16. 
28. 
33. 

3, 
13, 

9. 
20, 
13. 
67. 



Dairy 
products 



Poultry 

and poultry 

products 



5.1 

7.8 

2.9 

Ifi 3 

6.6 

40.3 

17.7 

10.2 

6.3 

9.3 

8.6 

10.3 

3.5 

6.3 

5.5 

6.9 

22.6 

34.5 

39.5 

29.9 

22.5 

4.3 

8 3 

5.2 

3.4 

11.2 

39.7 

35.9 

4.6 

64.7 

3.6 

4.6 

IS. 2 

6.6 

15.3 

39.9 

56.5 

3.7 

3.6 

8.1 

5.8 

9.4 

77.9 

9.5 

18.6 

U. 1 

70.9 

4.2 



1.4 

2.3 

2,4 

8.8 

3.1 

21.1 

48.9 

4.3 

1.8 

1.5 

1.6 

4.2 

1.6 

2.6 

.9 

.4 

11.7 

12.2 

21.4 

4.9 

3.7 

.6 

3.8 

1.1 

2.0 

3.3 

29.2 

20.'! 

.8 

10.6 

1.5 

.9 

6.2 

1.7 

9.6 

13.3 

17.7 

1.3 

1.8 

.8 

2.3 

12.2 

4.6 

8.4 

9.6 

4.9 

2.0 

1.1 



Other 
livestock 
products 



.5 
.1 
.6 
_ 2 
.2 
.1 
.1 
.1 
. 2 
.5 
.1 
.3 
.8 
.3 
.1 
.1 

2.3 
.1 

4.2 
.3 
.1 

3.0 



.4 

.1 

1.4 

.6 

.1 



.7 

.1 

3.4 

4.7 

.7 

.1 

.7 

.3 

1.5 

6.1 



Field crops 



38.60 



61.6 
38.2 
65.6 
23.2 
33.8 
18.7 

9.4 
14.4 
66.9 
63. 6 
53.7 
31.9 
36.3 
47.4 
46.8 
73.3 
41.8 
26.0 

7.1 
28.0 
40.2 
68.0 
29.4 
48.8 
34.6 
12,2 

3.4 

9.8 
3.3.0 
10.3 
76. S 
75.4 
27.2 
55.1 
28. 5 
17.4 

6.7 
80:6 
39 4 
40.2 
47.4 
29.9 

2.6 
32.5 
34.1 

4.6 

6.0 
18.2 



Vegetables 

harvested 

for sale 



2.30 



.8 
6.9 

.4 
8.3 
2.8 
2.4 
7.6 
22.4 
1.0 
1.3 
1.1 
1.8 

.2 



1.4 

8,6 

6.2 

3.6 

.6 

.9 

.5 

.3 

.1 

.6 

1.3 

15.6 

1.2 

6.0 

.7 

210 

.4 

3.4 

2.6 

3.0 

1.8 

.1 

.7 

1.8 

2.6 

.3 

2.8 

3.2 

.5 



Fruits and 
nuts 



2.2 

2.1 

27.8 

1.6 

2.6 

6. 1 

30.3 

3.0 

2.0 

.9 

.8 

.1 

.4 

.6 

3.3 

2.0 

3.2 

8.3 

6.1 

.2 

.3 

.8 

.3 

.2 

.1 

2.4 

4.7 

kO 

5.4 

.9 



2.0 
.6 
9.7 
3.1 
2.2 
l.S 


1.1 
1.6 
3.0 
1.5 
3.7 
10.2 
4.2 
.8 




Horticul 
tural spe- 
cialties sold 



.3 

.2 

2 3 

2.1 

7.S 

3.4 

4.5 

.8 

.4 

2.1 

1.7 

.6 

.6 

.6 

.4 

1.8 

3,6 

9.9 

2,4 

.8 

.3 

.9 

.4 

.4 

.3 

2.5 

9.3 

.2 

4.9 

.4 

.1 

3.9 

.7 

1.9 

4.8 

7.8 

.3 

.4 

.9 

.7 

.9 

.8 

1.4 

2.1 

1.1 

1.0 

.1 



Forest 

products 

sold 



0.33 



. 1 
.5 
.1 
.1 
.3 
.2 
.4 

1.3 
.3 


9 

' 


.4 
.3 

3.6 
.3 
.7 
.3 

.: 

.6 
.2 
.2 





6.1 


.3 
.4 
.6 


.2 
.1 
.7 
.4 
.8 
.5 


.6 
.1 



2.8 

1.4 
.3 

1. 1 
.3 
.1 



Farm prod- 
ucts used 
by farm 

households 



8.96 



34.0 
4.2 

21.2 
.9 
2.3 
4.7 
9.3 
7.8 

16.9 
3.0 
3.2 
6.3 
1.7 
4.6 

24.0 

12.5 

11 8 
7.3 
4.7 
9.1 
4.3 

22.3 

13.6 
2.7 
3.6 
2.0 

11.0 
1.8 
7.4 
4.3 

14.3 
4.8 
8.2 

73.2 
5.9 

10.7 
3.9 
9.2 
3.7 

31.5 
8.8 
3.9 
5.2 

26.4 
5.6 

51.6 
3.5 
2.3 



DEFnnTIONS 



i horses, mules, cattle, swine, sheep and goats, and excludes poultry, bees, and fur animals and production 



Livestock and liEestoch products. — Includes domestic animals such i 
from these. 

Other livestock products. — Includes wool, mohair, meat, hides, bees, honey, wax, goat milk and products, and fur anfmals sold or traded 

FieU crops.- Includes items such as corn, soybean?, small grains, annual legumes, hay. clover and grass seeds, and miscellaneous crops including Irish potatoes, swectpotatoes. 
cotton, tobacco, sugarcane, sugar beets, broomcorn, popcorn, mint, hops, etc., and byproducts such as cottonseed, beet pulp and tops pea vines etc ' ■ "- »~~vuci>, 

\ egetable for sale . — Includes all vegetable crops. f > f > . 

Fruit and )i!/(s -Includes jll tree fruits, nut.s and grapes, small fruits and citrus, and excluding wild fruits except wild blueberries where land was used primarily for their 
production. \\ ild or seedling pecans are included whether grown in orchards, farmyards, pastures, and elsewhere on farm or ranch .? tv v n* 

Horticultural speciaUies.—laclades crops grown under glass, propagated mushrooms, nursery products and flower and vegetable' seeds, bulks, and flowers and plants grown 

Farm products used by farm households.— loctudes products of farm consumed by operator's family whether living on farm or not and by all households on farm and excludes 
products of institutional farms used by inmates. ' lo.^, ou^ cnjuucs 

Forest prorfi/tfs.-Includes firewood, fuel wood, standing timber, saw tops, veneer logs, pulpwood, mine props, tanbark, charcoal, fence posts, railroad ties, pales and pUine 
turpentine, resin, maple syrup and sugar, etc. > »- > >->~, i/o-co ouu j>uiub 

SotntCE: Cenraso/^jiri(M;I/ur<r, 1939. 



■was 0.5 percent of all employed workers, while in 
Nevada the proportion was as high as 15.1., in Arizona 
8.5, and in Montana 6.0 percent. 

Forestry and fishing ^ engaged only 0.2 percent of 
all employed workers in 1940, while in Florida the per- 
centage was 1.8, in Georgia and Maine 1.2, and in 
Louisiana 1.0. Six States, namely Georgia, Florida, 
California, Louisiana, Virginia, and Massachusetts, ac- 
counted for half the national total. 



'At this writing, no separate data on the distribution of em- 
ployed workers in forestry and fishing are available. 



Manufacturing 

While the geographical distribution of extractive 
industry is determined largely by the location of physi- 
cal resources, the location of manufacturing as a whole 
is dominated by no single factor. Some manufactur- 
ing industries are "material-oriented" and the problem 
of location is limited by a choice between possible 
sources of supply of the requisite factors of production. 
The processing of minerals and of perishable agricul- 
tural products thus generally takes place close to the 
resources and is concentrated or scattered depending 



/" 



76 



National Resources Planning Board 




E*CM DOT EQUALS 250 PERSONS EMPLOYED 



PKEfARED W OmCE OF THE .VATIOKAL RESOURCES COifMnTEE 



Figure 47 



Source : Bureau of the Census. 



on the distribution of the resources. At the other ex- 
treme are manufactures such as bread and bakery prod- 
ucts and ice, which are "consumer-oriented." and are 
thus distributed in much the same manner as popu- 
lation, modified by relative consumer mcome. 

The major part of manufacturing, however, is di- 
rectlj' tied to neither raw materials nor the ultimate 
consumer. The industries in this third category are 
largely responsible for the highly uneven geographic 
distribution of manufacturing activity (fig. 48) . Tliree 
general areas of concentration are evident, the great- 
est extending from the western shore of Lake Michiean 
to the Atlantic coast and southward to the Ohio and 
Potomac Rivei-s. The second cluster occurs in the 
southern Piechnont, and the third includes the large 
metropolitan regions along the Pacific coast. A more 
detailed picture of tlie concentration in manufacturing 
employment is presented in Figure 49. which shows the 
distribution of wage earners in the principal manufac- 
turing counties of the United States in 1939. 

Measured in terms of proportion of all gainful work- 
ers of a State, there is greater specialization in agri- 
culture than in manufacturing. The proportion of 
employed workers in agriculture ranged from 3.0 per- 



cent in Ehode Island to 57.7 percent in Mississippi, and 
in manufacturing from 2.5 percent in North Dakota to 
45.8 i^ercent in Ehode Island. Two States, nameh', 
Rhode Island and Massachusetts, had lower proportions 
in agriculture than any State had in manufacturing, 
while four States, namely, Arkansas, Mississippi, North 
Dakota, and South Dakota, had higher proportions 
engaged in agriculture than any State had in manu- 
facturing. This difference in distribution between 
agi'iculture and manufacturing is shown graphically in 
figure 50. Here the proportions of total gainful work- 
ei-s in these activities in each State are shown by the 
vertical distance and are arranged horizontally in order 
of magnitude, clearly demonstrating the greater dis- 
persion in the case of agriculture. 

The distribution of manufacturing activity among 
the States and the specialization of particular areas in 
manufacturing can be derived from tables 2 and 3. 
More exact measures of concentration and specializa- 
tion based on these data are developed in the following 
chapter. A rough indication of the distribution of 
manufacturing among the States is given in table 5, 
which shows for 1940 the percentages of total employed 
persons in all economic activity, in all manufacturing. 



Iivdustrial Location and National Re-^miiyes 



CENSUS OF MftWUFACTuRES 

DENSITY OF WAGE EARNERS ENGAGED IN MANUFACTURING. 



BY COUNTIES; 1939 




WAGE EARNERS 
I I NOW 

^'■/_\:\ I TO 499 
I I 500 TO 2.499 

I MOO TO 4.999 
j 5,000 TO 9.999 
I 10.000 OR MORE 



Figure 48 



and in each of 18 groups of manufacturing included in 
the 7 States with the highest proportions of each. 

Seven States, namely, New York, Pennsylvania, 
Illinois, California, Ohio, Texas, and Michigan, in- 
cluded 44 percent of all emploj'ed workers in the 
United States. The States having the 7 highest pro- 
portions of employed workers in manufacturing — sub- 
stituting Massachusetts and New Jersey for Texas and 
California in the above list — have a total of 56 percent 
of all employed persons in manufacturing in the United 
States. Among the 18 subgroups of manufacturing 
activity, only 3 groups had less than 50 percent of the 
United States total located in the 7 ranking States, 
namel}', food, logging, and saw and planing mills, all 
characterized by small establishments and wide mar- 
kets ; 13 of the subgroups had at least 55 percent of the 
total employed in the first 7 States, with a peak of 88 
percent for automobiles and equipment. The latter 
group had 62 percent in the State of Michigan, while 
1 other group, apparel, had 57 percent included in the 
first 3 States. 

Services 

Services deserve particular attention, first, because 
they engage more persons than agriculture and manu- 



facturing combined, and second, because some are 
closely related to manufacturing activity. Industrial 
communities require a certain proportion of "residen- 
tiary services" on the spot and the adequacy of local 
services may influence plant location, while on the other 
hand the development of certain local services is 
strongly influenced by industrialization. 

Services maj' be divided into two groups, those of 
most direct importance to the manufacturer, and those 
needed by the public generally. Construction and 
transportation facilities may be classed in the first 
group and trade, professional, public, and personal 
service in the second. 

Although services are "consumer-oriented," their 
relative development among areas is affected by more 
than density of population alone. Owing to economies 
of centralization, variations in income patterns, and 
differences in industrial structure, services to consum- 
ers are fi'equently limited by local factors or \>qv- 
formed at considerable distance from the population 
they serve. 

Building 

Roughly 2,056,000 pei-sons were classified as build- 
ers and building contractors in 1940, representing 5 



/ 



78 



National Resources Planning Board 




CONCENTRATION OF MANUFACTURING EMPLOYMENT IN 33 INDUSTRIAL 
_ AREAS a OTHER IMPORTANT INDUSTRIAL COUNTIES. 1939 



\ i i 






— i 







i i 



V;_^^. 



> f • ' y. ■■ ; 





'= ^8 



LEGEND 
33 INOUSTPISL AREAS 



o 



Figure 49 

percent of the total labor force. The proportion of Railroads (including repair shops) and railway ex- 

the total employed workers of each State in this branch P"'*^ss jervice 1, 135. 000 

of production ranged from 2.0 percent in North Dakota Shet'uansportati7n"\\\\\^\\\\\\\\\"::_"::::::::: mi, S 

to 7.4 percent in Nevada. The more even distribution Communication 393 000 

of building among the States than of either agri- utilities 542,000 

culture or manufacturing activity is illustrated in ■n' i i. ^ ■ ^ ij-i.-ui.i- 

„ fe J iimployment was lairly evenly distributed in propor- 

''^, 1 ' , -, T , ,. T , ■ » tion to the gainfully occupied population, with a low 

Clearly building must be performed at the point or j-nn i.-oi.i/~<i- ^ i- i. 

''. "^ .... "^ _ or 2.9 percent m South Carolina and a median percent- 

consumption « and local activity m building is affected ^^^ ^^ g g ^j^^ l^-gj^^^^ percentages were in Nevada 

not only by population density but also by degree of (i2.2) and Utah (10.5), both on transcontinental 

industrialization. However, the States with the lowest routes, 
proportions occur generally in the South which has a 

relatively dense population, reflecting still a third fac- Trade 

tor, namely, income pattern. According to the 1940 Census of Population, 9,870,- 

000 persons or 22 percent of all the gainful workers 

Transportation j^^ ^^^ United States were engaged in trade, including: 

Transportation, including communication services. Wholesale trade 1,207,000 

accounted for 3,113,000 persons or 7 percent of the Food and dairy products stores, and milk retailing— 1, 489, 000 

labor force ui 1940. The more important subdivisions ^'^""S and drinking places l, 116, 000 

and the number of persons occupied were : ^^°**"^ ^"^"^^^" ^°<^ accessories retailing, and filling 

*^ '^ stations 739,000 

~~~~~ , Other retail trade 2,987,000 

"Technological developments such as prefabrication, it widespread, t-,- . j , .. .n„ ^^^ 

may make possible centralization of construction activity by reducing Finance, insurance, and real estate 1,468,000 

the functions which must be performed on the spot. Business and repair services 264,000 



Industrial Location and National Resources 



79 



Table 5. — Percentage of total employed iiorkers included in the 7 States with the highest percentages for each of IS groups of manufacturrny 

activity, 1940 



Manufactoring gioup 


Highest 


Second 


Third 


Cumulative 
total of 
firsts 


Fourth 


Fifth 


Sixth 


Seventh 


Cumulative 
totalof 
first? 


Food - 

Textiles--- 

Apparel.- _ 


N. Y. 10.95 
N. C. 16.24 
N. Y. 36.31 
Wash. 15. 11 
Wash. 7.97 
N. Y. 11.32 
N. Y. 15.60 
N. Y. 18. 46 
N. Y. 13.26 
Tex. 18. 47 
Mass. 19.26 
Ohio 15.06 
Pa. 21.76 
Conn. 15. 12 
111. 14.98 
Mich. 61. 87 

Calif. 16.59 
N. Y. 18.76 
N. Y. 12.84 
N. Y. 11.01 


111. 

Pa. 

Pa. 

Oreg. 

Orcg. 

III. 

Mass 

111. 

N.J. 

Pa. 

N. Y. 

Pa. 

Ohio 

N. Y. 

Ohio 

Ohio 

N. Y. 
Ohio 
Fa. 
Pa. 


10.43 

12.22 
11.95 
11.18 
6.40 
9.38 
8.82 
11.76 
11.76 
11.04 
18.77 
14.88 
16.27 
14.19 
12.77 
7.75 

12.31 
11.01 
10.15 
7.15 


Pa. 

Mass. 

N.J. 

Fla. 

N. C. 

N. C. 

Pa. 

Pa. 

Pa. 

Calif. 

Mo. 

N. Y. 

111. 

111. 

N. Y. 

Ind. 

Pa. 
N.J. 
111. 
111. 


7.41 
10.85 
8.42 
4.42 
6.30 
6.75 
8.32 
7.10 
7.11 
10.88 
9.10 
8.60 
10.79 
10.66 
11.99 
6.06 

10.69 
8.60 
7.77 
6.36 


28.79 
39.31 
56.68 
30.71 
20.67 
27.45 
32.74 
37.32 
32.13 
40.39 
47.13 
38.54 
48.82 
39.97 
39.74 
75.68 

39.59 
38.43 
30.76 
24.52 


Calif. 

N. Y. 

HI. 

Ark. 

Ala. 

Mich. 

Ohio 

Ohio 

111. 

N.J. 

Pa. 

111. 

N. Y. 

Pa. 

Pa. 

N. Y. 

N.J. 
Pa. 
Ohio 
Calif. 


7.09 
8.75 
6.25 
4.41 
6.26 
6.33 
6.92 
6.43 
6.39 
9.99 
7.84 
6.88 
6.79 
8.42 
9.60 
4.42 

10.02 
8.30 
7.41 
5.59 


Ohio 

S. C. 

Mass. 

N. C. 

Ark. 

Pa. 

Wis. 

Calif. 

Ohio 

111. 

111. 

N.J. 

Ind. 

Ohio 

N.J. 

Wis. 

Va. 
111. 
Mich. 
Ohio 


4.83 

8.59 
4.16 
4.34 
5.80 
6.24 
6.70 
6.37 
6.18 
7.72 
7.80 
6.46 
5.72 
6.79 
6.72 
3.08 

6.69 
7.56 
6.62 
5.19 


Tex. 

Ga. 

Mo. 

Me. 

Ga. 

Ohio 

111. 

Mass. 

Va. 

N. Y. 

N. H. 

W. Va 

Mich. 

N.J. 

Mass. 

Pa. 

Mass. 
Mass. 
N.J. 
Tex. 


3.79 
7.25 
3.43 
4.27 
5.69 
5.60 
6.47 
4.67 
4.69 
6.48 
5.96 
.5.12 
4.99 
6.18 
6.52 
2.89 

6.13 
6.30 
5.41 
4.74 


N.J. 

N.J. 

Calif. 

La. 

Miss. 

Ind. 

Mich. 

N.J. 

Mich. 

Okla. 

Wis. 

Ind. 

Conn. 

Mass. 

Md. 

Ul. 

Md. 
Conn. 
Mass. 
Mich. 


3.66 
5.40 
3.00 
3.83 
5.42 
5.38 
6.11 
4.29 
4.33 
4.69 
5.07 
4.79 
3.97 
5.08 
6.67 
2.40 

5.65 
4.90 
5.33 
4.04 


48.18 
69.30 
73.62 
47.56 




43.84 


Furniture and store fixtures 


51.00 


Paper- - - 

Printing - - 


58.94 
59.08 
54.79 


Petroleum and coal - - -. 


59.22 




73.08 


Stone, clav, and glass 


61.80 


Iron and steel . . 


70.29 


Nonferrous metals.-- 

Machinerv . -- 


66.44 
68.25 




88.47 


Transportation equipment, except automo- 


68.08 


Others -- - 


65.49 


All manufacturing 


55.53 
44.08 



PERCENTAGE OF EMPLOYED PERSONS IN MANUFACTURING, AGRICULTURE, 
AND BUILDING* IN ORDER OF PERCENTAGE, BY STATES -1940 



PERCENTAGE OF 

EMPLOYED PERSONS 

OF STATE 



PERCENTAGE OF 

EMPLOYED PERSONS 

OF STATE 




^BUILDING PERCENTAGES MULTIPLIED BY TEN 

Source: Census of Population. 19'i0 



15'" ZO'" 25" 30'" 35'' 

RANK OF STATES IN ORDER OF PERCENTAGES OF EMPLOYED PERSONS 



FiGURir 50 



80 



National Resovrces Planning Board 











^-^jf, r' .-^f 












Source : Census of Distribution, 1935. 

Figure 51. Persons Employed in Wholesale Trade, 1935 





• .*. '• •/ 


i 
i 


• 
• 

• 


'^ 


• 1 
• « 

• 


1 

1 




« 














• \ 








• • • 


v* . • \ 


1 






/ • 


\» • 


\* -^ 


" — — - 


. 


J . ' • 


U 


\ r 






1 " *— 




Source : Census of Distribution. 1935. 

FiGUKE 52. Persons Employed in Retail Trade, 1935 



InduMrial Location and National Resources 



81 



PERCENTAGE OF TOTAL PERSONS EMPLOYED IN WHOLESALING AND 
RETAILING IN ORDER OF PERCENTAGE. BY STATES 

1940 



PERCENT 
40 



20 



TH 
GUAR 


RD MEt 
TILE 


IAN THIRD 
QUARTILE 






RETAILING — ^ 


__— — - 


^__^^ 


^ 






^^-^ 








/ 






- 


- 






J 


- 




WHOLESALING^ 


_^ -^ 


1 




^ 






! 


1 1 I t 1 1 1 1 1 1 1 1 


■ ; ! 1 1 1 


1 1 1 1 1 1 1 1 I 1 1 1 



10^" 



15T» 20^" 25^" 30'" 35'" 

RANK OF STATE IN ORDER OF PERCENTAGE OF TOTAL PERSONS EMPLOYED 



40'" 



45'" 



50'" 



SOURCE: BUREAU OF THE CENSUS 



Figure 53 



Trade as a whole tends to follow the population and 
its purchasing power. Some of the branches of trade 
shows highly uneven distributions, however, and are 
not "residentiary" in the sense that they need to locate 
within the immediate reach of the consumer. Whole- 
sale trade ' is higlily concentrated in urban centers 
(see fig. 51), particularly in the Northeast and on the 
Pacific coast. Retail trade, on the other hand, follows 
the population much more closely. Comparison of 
figure 52 with figure 41 shows relatively less concen- 
tration of retailing than of population in the South, 
and suggests again curtailment of economic activity by 
low purchasing power. 

Figure 53, in which the percentage of retailers and 
wholesalers to total employed persons in each State is 
shown by the vertical distance and the values are ar- 
ranged horizontally in order of magnitude, illustrates 
grapliically the differences between retail and whole- 
sale distribution. When jneasurcd in terms of propor- 



" The Census of Porulation provides no brpakdnwns for wliolesnic and 
retail trade, but the Census of Distribution of 1935 gives statistics on 
these activities. Wbilc the totals covered by the two censuses are not 
the same, this does not invalidate the use of the latter to show distribu- 
tion of wholesaling and retailing among States. 



tion of all gainful workers of a State, the incidence of 
retailing in the economies of most States is remarkably 
even." The curve for wholesaling is steeper than that 
for retailing, rising sharply in the upper quartiles par- 
ticularly, while the latter almost levels out in the center 
of the distribution. 

Retailing is primarily a distributive service and must 
be located with regard to its widely dispersed consum- 
ers. Wholesaling, insurance, and banking are not only 
distributive services; they assemble and store as well. 
Thus, while there is a tendency toward dispersion in 
relation to the market, storing of funds and merchan- 
dise may often take place at some distance from the 
eventual customers. The wholesaler in one State may 
be storing goods for consumption in other States or (if 
he is an exporter) in other countries. This is also true 
of administrative work, e. g., recording and accounting, 
which are more important in wholesaling, banking, 
and insurance than in retailing. It is evident that 
some leeway is permitted these services in locatiii 



'" One factor in the relatively low proporations of retail employees in 
agricultural States is that agriculturists do not need to buy for cash 
as much foodstuff as the townspeople buy from retailers. 



82 



National Resources Planning Board 



their storage and administrative activities away from 
centers of industry generally. This policy has already 
been adopted to some extent by insurance companies 
maintaining their main offices in Iowa or Connecti- 
cut, rather than the financial center of New York City. 

Professional Service 

Professional service engaged about 3,318,000 persons 
or 8 percent of the total employed workers in 1940, in- 
cluding 395,000 persons in recreation and amusement. 
The highest proportions of professionals among all 
gainfully occupied were in California with 11.0 per- 
cent, and New York and Colorado with 10.4 percent 
each. The 10 States with the lowest proportions were all 
in the South, Mississippi lowest of all with 4.6 percent. 
That there is a "floor" at all in the low-income areas 
is due mainly to the presence of school teachers. Pro- 
fessional service is the most evenly distributed of any 
of the groups of economic activity considered here.^^ 

Personal Service 

For the whole United States, the percentage in per- 
sonal service among all employed persons in 1940 was 
roughly 9 percent, including 2,327,000 persons in do- 
mestic service. The highest proportion among all em- 



" See table 1, coeffiients of localization. 



ployed persons occurred in Florida with 17.1 percent, 
Georgia with 12.9 percent, Louisiana with 12.2 percent, 
and Texas with 11.1 percent. 

One factor common to these States with unusually 
high ratios of personal service is the tourist industry 
attracting great numbers of persons with concomitant 
demands for service. The chief clue to a relatively 
high proportion of personal service in an area prob- 
ably lies, however, in the stimulus from low incomes 
and social traditions, forcing people to seek work as 
domestics, particularly in the case of the Negroes in 
the South. 

Government Service 

Approximately 1,753,000 or 3.9 percent of all em- 
ployed persons in 1940 were in Government service. 
In addition to the District of Columbia and its neigh- 
boring States, there were, in 1940, unusual concentra- 
tions in a number of States due largely to the presence 
of military centers. The highest percentages were 8.8 
in Wj'oming, 7.1 in Virginia, 6.7 in Maryland and 5.9 
in Washington. Some Government services, such as 
most Federal Government agencies, are clearly not 
"residentiary" in the sense that their functions are re- 
quired specifically by the local population ; others, such 



PERbENTAGE DISTRIBUTION OF EMPLOYED WORKERS OF 



EACH STATE AMONG 7 GROUPS OF ECONOMIC ACTIVITY 
( ~"^- — ., 1940 



r \ 




LEGEND 

^mm. acn>cuLTuRE 

I . 1 OTHEW ExTfiacnoN 

r -* MaNJfflCTUBING 

■■^ - f m TRANSPORTATION 

^•.■f.'.- \ TBflOE 

1 SERVICES 

] 8UIL0IMG 



PHEPARtD IN OfFICE or THC NATIONAL (lESOURCES PLANNING BOARD 



Figure 54 



Irvd/ustrial Location and National Resources 



83 



MAJOR ECONOMIC REGIONS OF THE UNITED STATES 




PREPARED IN OFFICE OF THE NATIONAL RESOURCES PLANNING BOARD 



FlGUEE 55 



as police or local govermnents, clearly are residentiary. 
Relative to professional and personal service, public 
service is concentrated geographically. 

Regional Patterns of Economic Activity 

The composition of the labor force of each State 
is summarized in figure 54, which shows the relative 
importance of each of seven major groups of economic 
activity by proportionate vertical bars. States are seen 
to group themselves for the most part in contiguous 
area or regions with the same principal economic ac- 
tivity, vchether agriculture, manufacturing, or mining. 
The distribution of employed workers among the vari- 
ous activities appeai-s far more even in the Pacific 
and most of the Mountain States than in the States east 
of the Rocky Moimtains. The tendency for greater de- 
velopment of the services where there is intense manu- 
facturing acti\'ity also appears strikingly in this map. 

In figure 55, the area of the United States is divided 
roughly into regions or areas having for the most part 
the same economic characteristics. Any attempt to 



define a few homogeneous areas in a country as vast 
and diversified as the United States must perforce 
adopt arbitrary criteria. Here we have considered two 
factors discussed in this chapter, population density 
and principal economic activity, and in addition the 
level of income. This regional break-down serves 
not only as a rough siunmary of the material presented 
in this chapter but also as a general frame of reference 
for later sections on analysis of regional industrial 
development. 

Nine general regions are identified : the Northeast 
and North Central Forest-Recreation Areas, the North- 
east Industrial Belt, the Appalachian Coal Region, the 
Southern Agricultural Region, the North Central Agri- 
cultural Region, the "Western Agricultural-Mining 
Region, and the North and South Pacific Industrial- 
Commercial Areas. The boundaries are established on 
the basis of these criteria : principal economic activity 
(manufacturing, manufacturing and trade combined, 
agriculture, or mining) measured in percentage of 
gainful workers; density of population per square 
mile; and relative income level, as indicated by plane 



84 



National Resources Planning Board 



of living indexes."^ I)i addition, boundaries between 
agricultural areas are based in part on consideration 
of leading tjpes of farming. County statistics have 
been used but the boundaries have been generalized 
and do not necessarily follow county lines. T\Tiile the 
regions defined include wide ranges in population 
density, income level, and distribution of gainful 
workers among various economic activities, they mark 
off the most important geographic variations in these 
factors. 

The Northeast and North Central Forest-Recreation 
Areas ^^ are characterized bj' an average population 
density of apj^rosimately 25 persons per square mile 
and for the most part by a medium plane of living 
index. The principal economic activity is farming, 
with greater proportions of gainful workers in forestry 
and fishing than in the country as a whole or in con- 
tiguous regions. In addition, the North Central Area 
has relatively greater activity in mining. 

The Northeast Industrial Belt is a predominantly 
manufacturing area, marked by a relatively high plane 
of living and an average population density of roughly 
60 persons per square mile. In many counties the 
density exceeds several hundred persons per square 
mile. 

The Appalachian Coal Area has been delineated on 
the basis of proportion of gainfid workers in mining 
greater tlian those in any other activity. Several of 
the counties grouped in this area have high pro^Dor- 
tions in manufacturing as well. In the North, the 
industrial pattern is closely tied to and merges with 
the manufacturing and mining activities of the Pitts- 
burgh area as a whole. It should be noted in this 
instance particularly that the boundaries established 
are not intended to suggest separate and unrelated eco- 
nomic functions but principal local activity. The 
population density of the Appalachian Coal Area as 
a whole is high, averaging about 25 persons per square 
mile and, in the northernmost counties, about 100 per- 
sons per square mile. The plane of living index is rela- 
tively low with the exception of the counties near Pitts- 
burgh where it is medium. 

The Southern Agricultural Region, with cotton the 
dominant crop, has an average population density of 

" See Carter Goodrich et al.. Migration and Economic Opportunity, 
Philadelphia, 1936, map opp. p. 14. 

" For more detailed discussion of the economy of this t.vpe of region, 
see National Resources Committee. Regional Planning, Part VIII-yortK- 
em Lakes States, 1939. 



roughly 50 persons per square mile. The plane of liv- 
ing index is low with the exception of Florida where 
it is medium. The Florida area differs from the rest 
of the region in other respects as well and should per- 
haps be classified separately as a recreation area. The 
North Central Agricultural Region, which is largely 
a corn-growing area except for wheat in the northern 
part, has an average population density of roughly 
30 persons per square mile, a medium plane of living 
in the north and a high plane of living in the middle 
and southern parts. 

A vast area in the west has been classified in the 
Western Agricultural-Mining Region where the chief 
activities are mining and stock raising. The high pro- 
portions of gainful workers in transportation reflect 
the geogi'aphic position of these States, which serve 
as an avenue of communication between the more 
densely populated areas to the east and west. Many 
irrigated sections, which have entirely different popu- 
lation and agricultural patterns, are included in this 
region. Since these sections are small and scattered, 
they cannot be grouped in a separate economic unit. 
The region as a whole has a low population densit}', 
rarely higher than 25 jDersons per square mile and 
averaging about 5 persons per square mile. The plane 
of living index is medium. 

Two areas on the "West coast have been differentiated 
as Pacific Commercial-Industrial. For the territoi-y 
so designated the poiDulation density is markedly 
higher than the surrounding area, averaging roughly 
35 persons per square mile, with very high densities 
in the urban areas. TNTiile these areas include a high 
proportion of agricultural workers, the combination 
of manufacturing and trade activities is preponderant 
and the plane of living index relatively high. 

Conclusion 

The broad regional distribution of economic activ- 
ities sketched in this chapter serves as a foundation 
for the comprehensive analysis of specific locational 
factors treated in the subsequent portions of this vol- 
ume. Together with the geographic distribution of 
natural resources, the elements here treated, whether 
evolved by underlying economic forces or historical 
accident, constitute the basic data which national loca- 
tional policy must employ as its starting point. 



CHAPTER 4. SHIFTS 



OF MANUFACTURING INDUSTRIES 

By Daniel Creamer ' 



The problems of industrial location, it has been 
pointed out, arise chiefly in connection with manufac- 
turing. The location of extractive and service indus- 
tries can be simply explained ; the factors determining 
the location of manufactures are, generally speaking, 
numerous, and their interactions are complex and dy- 
namic. Marked changes in the Incational pattern may 
occur in many industries over a short period. 

This chapter attempts to measure, describe, and ex- 
plain the geographic changes which have occurred in 
American manufacture, as reflected by the redistribu- 
tion of manufacturing employment between 1929 and 
1937.^ By 1937 there had been substantial recovery 
from the great dejiression of the earlier j^ears of the 
decade, and manufacturing activity was again at a 
high level. Moreover, readjustments to wartime needs 
had not yet commenced. A comparison of the loca- 
tional pattern of 1937 with that of 1929 should thus in- 
dicate the broad developments during recent years, 
free of serious distoi-tion from cyclical or abnormal 
influences. Conclusions are, of course, restricted by the 
limitations of analysis of a single time period. 

The following discussion is devoted primarily to 
a measurement, industry by industry, of the divergence 
of the trend of employment in individual States from 
that of the Nation as a whole. These divergences will 
be termed "locational shifts," or simply, "shifts." A 
locational shift means the diff'erence between the 
change in the number and distribution of wage jobs 
which actually occurred in a given industry in a given 
State and that change which would have resulted if 
this industry had grown or declined in the State at 
the same rate it did in the Nation.' 



' Economist. Bureau of Labor Statistics. Assisted by Richard H. Lewis 
and Jesse L. Sternberger of the Bureau of Labor Statistics. Prepared 
under the direction of Emmctt H. Welch. Chief of the Division of Occu- 
pational Outlook. Bureau of Labor Statistics. 

' Changes in output per wage earner or per man-hour probably would 
provide a helpful basis of classification but the requisite data are inade- 
quate for a comprehensive and systematic presentation. Changes in 
output can be used to supplement changes in employment, especially 
for industries with declining employment. With such information it 
is possible to distinguish the predominant cause of the decreasing 
volume of employment, whether It is due to decline in the consumer 
demand for the product or to extreme technological displacement of 
labor. The latter condition must be said to prevail when sharp in- 
creases in production accompany appreciable decreases in numbers 
employed. 

■ It makes no difference in our measurement whether the shift In- 
volved (1) the dismantling of a plant in one locality and the shipment 
of its equipment to another; (2) the develoitmcnt of a new establish- 
ment by an existing concern, with or without dismantlement of an old 
establishment: (3) the development of a new establishment by a new 
concern ; (4) the expansion of productive capacity of a going establish- 
ment : or (5) merely differences in the degree of utilization of existing 
capacity. 



Industries Grouped According 
to Changes in Employment 

As a preliminary, it is necessary to see to what extent 
employment opportunities changed between 1929 and 
1937 in individual industries in the country at large. 
In order to keep the iuA'estigation within manageable 
proportions, the analysis has been confined to those 
industries, of the 350 covered by the 1937 Census of 
Manufactures, which reported an average of more than 
10,000 wage earners either in 1929 or 1937. The 141 
such industries or industry groups employed, both in 
1929 and 1937, more than 90 percent of all wage earn- 
ers in manufactures nationally;* they are regarded 
in this chapter as the "total," whether the reference is 
to the State or the Nation. 

The percentage change from 1929 to 1937 in the 
average number of wage earners was computed for 
each of the 141 industries which were then grouped 
according to the following changes in wage earners 
employed : 

Group I. Increases of 24.0 percent or more; 

Group II. Increases from 6.0 to 23.9 percent; 

Group III. Increases from 1 to 5.9 percent, i. e., from 
virtually no change to increases up to that in total 
population ; 

Group IV. Increases or decreases less than 1 percent, 
i. e., virtually no change in employment; 

Group V. Decreases from 1.0 to 10.9 percent; 

Group VI. Decreases from 11.0 to 20.9 percent; 

Group VII. Decreases of 21.0 or more. 

This seven-group arrangement is shown in table 1, 
industries being listed in each group in order of the 
number of wage earners employed in 1929. 

The industries in group I, as would be expected, 
were typically smaller than those in group II, which 
in turn averaged smaller than those in group III. The 
respective medians in terms of wage earners in 1929, 
were 16,000; 24,000; and 31,000. Among the declinuig 
industries, there was no uniform relationship between 
size and percentage decline. The group with the larg- 
est relative decline (VII) was heavily weighted with 
manufactures used mainly in the building industry, 
which had made only a comparatively small recovery 
by 1937. 



♦ In some cases, combination of industries was necessary to achieve 
comparability of classifications In 1929 and 1937. 

85 



86 



National Resources Planning Board 



Table 1. — Selected iridusMes classified by increase or decrease, 
1929-19S7, in average number of wage earners 



Table 1. — Selected industries classified by increase or decrease, 
1929-1937, in average number of wage eartiers — Continued 



Industry 



Grand total 



Group I: Increase, 24.0 percent or 
more. 
Motor vehicle bodies, parts. _ 

Women's clothing 

Canning, fruits, vegetables, 

etc __ 

Chemicals i 

Agricultural implements 

Stamped ware, enameled ware, 

etc 

Rayon and allied products. .. 

Refrigerators _: 

Wirework 2.__ 

Paper goods i 

Lithographing 

Typewriters and parts 

Cash registers, adding ma- 
chines, etc 

House (urnisbingfi ^, and fabri- 
cated textiles 

Leather goods, ' handbags, etc. 

Aircraft and parts 

Carming, 15sh, etc 

Photographic apparatus, etc.. 

Food preparations i , 

Feeds, prepared for animals 

and fowls 

Gloves and mittens, cloth, etc 
Gloves and mittens, leather. ., 

Buttons 

Knit cloth 

Asbestos products 

Wallboard, gypsum produets.. 

Bags, paper 

Sausage, meat pudding, etc.. 
Pulp goods and synthetic resin 

Liquors, other than malt 

Liquors, malt 



Average number 
of wage earners 



1929 



Group total. 



Group ir, Increase, 6 per cent or 
more; 
Ste^l worlis and rolling mills. . 

Men's clothing— total 

Bread, other bakery products- 
Hosiery 

Paper 

Glass 

Woolen goods 

Boxes paper i 

Ship and boat building 

Rubber goods, other 

Paints 

Machine tool accessories 

Pulp, wood and other fibre 

Pumps and pumping equip- 
ment 

Wire drawn from purchased 

rods 

Clocks, watches, etc 

Aluminum 

Cigarettes 

Screw machine products and 

wood screws 

Wood turned and shaped 

Mattresses, bedsprings i 

Cutlery and edge tools 

Corsets and allied garments... 

Wrought pipe, etc 

Mirrors and other glass prod- 
ucts 

Optical goods 



Group total ."". 

Group III, Increase, 1.0-5.9 per- 
cent 

Boots, shoes (nonrubber) 

Printing and publishing, news- 
papers and periodicals 

Meat packing, wholesale 

Worsted goods 

Heating and cooking apparatus. 

Petroleum refining 

Non-ferrous alloys and prod- 
ucts ' 

Hardware ' 

Leather _. 

Cars, electric, steam railroad. 



221, 332 
187, 500 

98, 866 
63, 683 
61, 140 

40, 000 
39, 106 
26, 667 
22, 388 
20, 227 
18, 979 
16,945 

16, 840 

16, 631 
16, 465 
14,710 
13, 612 
]2, 967 
10, 616 

10, 223 
9,279 
9,203 
9,034 
8,491 
8,092 
7, 462 
6,970 
5,897 
6,654 
186 



8, 039, 143 



999, 165 



394. 574 
278, 633 
200. 841 
129, 642 
103, 320 
67, 527 
58.474 
56. 664 
56, 089 
40, 226 
29.211 
26. 682 
24. 729 

23,106 

22, 467 
21,450 
21, 210 
21, 142 

19, 881 
18, 712 
17, 187 
14, 991 
13. 664 
11,417 

10,811 
9,701 



205, 640 

129, 660 
122, 505 
88, 935 
86, 237 
80, 596 

79, 183 
52, 306 
49. 932 
40,015 



284, 814 
242, 879 

137,064 
78, 951 
77,512 

61,092 
65, 098 
60. 623 
33, 471 
32, 888 
24, 079 
21, 440 

23, 630 

23, 894 
20,852 

24, 003 
18, 229 
18, 460 
16, 794 

14,397 
12, 679 
11,637 
12, 026 
11,360 
13,023 
11,690 
10, 360 
10,217 
16, 673 
16,314 
47, 037 



Percent 
increase 
or de- 
crease 
1937 over 
1939 



1, 433, 076 



479, 342 
317.517 
239. 388 
160.460 
110.809 
79. 051 
67. 264 
65. 1.'i8 
62, 274 
48, 172 
31.664 
32. 893 
26, 994 

28, 320 

24, 580 
23. 223 
23, 695 
26. 149 

21. 287 
23. 087 
19, 165 
16, 830 
16.385 
14. 126 

12, 652 
11,998 



1,972.482 



215, 438 

13.6. 216 
127,477 
90, 782 
89, 287 
83, 182 

83, 016 
63, 000 
60, 687 
40. 466 



28.7 
29.5 

38.6 
24.0 
28. 6 

2 52.7 
40.9 

3 89.8 
49.5 

3 62.6 
26.9 

2 26.6 

3 40.3 

43.7 
26.6 
63.2 
33.9 
42.3 
68.2 

40.8 
36.6 
26.4 
33.1 
33.8 
60.9 

2 55.3 
48.6 
73.3 

194.9 



Per- 
cent of 
group 
total 
1929 



22.2 
18.8 

9.9 
6.4 
6.1 



2.7 
2 2 
2^0 
1.9 
1.7 



1.7 
1.6 
1.6 
1.4 
1.3 
1.1 

1.0 
.9 



21.6 
14.0 
19.2 

3 16.1 
7.2 
17.1 

' 1,5.0 
17.1 
13.0 
19.8 
8.4 
23.3 



3 22.6 

9.4 

8.3 

11.7 

23.7 

7.1 
3 23.4 
11.5 
12.3 
19.9 
23.7 

17.0 
23.7 



4.8 

4.3 

4.1 
2.1 
3.5 
3.2 

4.8 
1.3 
1.6 
1.1 



100.0 



23.3 
16.5 
11.9 
7.7 
6.1 
4.0 
3.5 
3.3 
3.3 
2.4 
1.7 
1.6 
1.5 

1.4 



1.2 
1.1 
1.0 



17.9 

11.3 
10.6 

7.7 
7.5 
7.0 

6.9 
4.6 
4.3 
3.5 



Cumu- 
lative 

per- 
cent of 
group 
total 

1929 



22.2 
41.0 

50.9 
67.3 
63.4 

67.0 
71.3 
74.0 
76.2 
78.2 
80.1 
81.8 

83.5 

85.2 
86.8 
88.3 
89.7 
91.0 
92.1 

93.1 

94.0 
94.9 
96.8 
96.6 
97.4 
98.1 
98.8 
99.4 
100.0 



23.8 
39.0 
51.7 
59.4 
65.6 
69.6 
73.0 
76.3 
79.6 
82.0 
83.7 
85.3 



89.6 
90.8 
92.1 
93.4 

94.6 
9.6.7 
96.7 
97.6 
98.4 
99.1 

99.7 
100.3 



17.9 

29.2 
39.8 
47.6 
66. 
62.0 

68.9 
73.4 
77.7 
81.2 



Indu.stry 


Average number 
of wage earners 


Percent 
increas 

or de- 
crease 
1937 over 

1929 


Per- 
cent of 
group 
total 
1929 


Cumu- 
lative 
per- 


1929 


1937 


group 
total 
1929 


Group III— Continued 

Tin cans and other tinware ' 
Knit outerw^ear 


31, 497 
28,968 
27, 122 

24, 754 
19, 097 

16, 660 
16, 175 
15, 825 
13. 033 
11,828 
10, 793 


33, 145 
29,321 
28,417 

25,333 
19, 437 

17,547 
16,840 
16, 583 
13, 678 
12, 075 
11, 392 


"5.2 
1.2 
4.8 

2.3 
1.8 

5.3 
4.1 
4.8 
4.9 
2.1 
5.5 


2.7 
2.5 
2.4 

2.2 

1.7 

1.4 
1.4 
1.4 
f.l 
1.0 
.9 


83.9 
86.4 
88.8 

91.0 
92.7 

94.1 
96.6 
96 9 




Bookbinding and blank book 


Butter 


Toys, games and playground 
equipment 


Bolts, nuts, washers, etc 

Cottonseed products 






Bags, other than paper 

Sporting and athletic goods 


99.0 
99.9 


Group total 


1, 150, 761 

424,916 
47, 391 
20,926 
20, 552 
14,544 
13,912 
12,353 


1, 192, 318 




99.9 










Group IV, Increase , .9 percent or 
less, to decrease,1.0 percent or less; 


422, 310 
47, 266 
20, 893 
20, 603 
14, 614 
14,024 
12,364 


<-.6 
-.3 
-.2 

.2 
-.2 

.8 

■1 


76.6 
8.5 
3.8 
3.7 
2.6 
2.5 
2.2 






86.1 
88.9 
92 6 


Fertilizers. ... 


Coke 


Smelting and refining, copper.. 
Sugar refining, cane 


95.2 
97 7 










Group total ... 


564, 594 


551,974 1 . 


99.9 








Group V, Decrease, 1.1-10.9 per- 
cent: 
Foundry and machine shop 
products . 


456, 736 

343, 138 

165,9.33 
130. 467 
79,327 
41,487 
35,409 
32,623 
28,281 
27,960 
27,028 
27, 019 
24, 960 
23,580 

19,876 
19, 741 

19, 306 
16, 539 
14,489 
14, 363 
13,077 
11, 618 
10,811 
10, 691 
10,367 


432,982 

308, 561 

141, 368 
116,839 
77, 545 
39,923 
33, 060 
30, 779 
27,979 
25,240 
26, 390 
25,340 
23,075 
21, 743 

18, 765 
17, 613 

17, 612 
15, 926 
14,043 
14,008 
12, 401 
11,265 
10, 130 
9,688 
9,511 


3-5.2 

-10.1 

-9.3 
s-10.4 
<-2.2 
-3.8 
-6.6 
-5.7 
-1.1 
-9.7 
-2.4 
-6.2 
-7.6 
-7.8 

-5.6 
-10.8 

-8.8 
-3.7 
-3.1 
-2.6 
-6.2 
-3.0 
-6.3 
-10.3 
-8.3 


28.6 

21.5 

9.8 
8.2 
5.0 
2.6 
2.2 
2.0 
1.8 
1.8 
1.7 
1.7 
1.6 
1.6 

1.2 
1.2 

1.2 
1.0 
.9 
.9 
.8 

'.7 
.7 
.7 


28.6 


Electrical machinery, radios.. 
Printing and publishing, job 


50.1 


Silk and rayon goods 




-Dyeing and finishing... 


73 1 


Knit underwear ._ 

Pottery 


75.7 


Carpets and rugs, wool 

Beverages, nonalcohoUc 

Plumbers suppUes - 


79.9 
81.7 
83 5 


Flour 




Textile machinery and parts.. 


86.9 


Lighting equipment.. 


90 


Boot and shoe cut stock and 




Cast iron pipe . 


92 4 


Tools, not including edge tools, 
machine tools .. 


93 6 


Hats, fur felt 




Cordage and twine 

Soap... 


95.5 


Wood preserving 


97 2 


Smelting and refining, zinc 

Tobacco and snuff 


97.9 
98 6 


Cooperage 


99 3 




100 






Group total 


1, 594, 824 


1, 481, 666 




100.0 










Group VI, Decrease, 11.0-20.9 per- 
cent: 
Motor vehicles 


226, 116 
193, 399 
63, 601 
33. 368 
30, 554 
28,693 
27, 922 
22, 399 
20, 882 
20, 000 
15, 762 
15.281 
11,046 
10, 467 


• 194, 627 
170, 072 
53, 722 
26, 426 
25, 981 
22, 973 
22,838 
18, 664 
18, 256 
16, 042 
12, 952 
12, 616 
9,000 
9,019 


-14.0 
-12.1 
-15.4 
-20.8 
-15.0 
-19.7 
-18.2 
-16.7 
-12.6 
-19.8 
•-19. 8 
-17.4 
-18.5 
-13.8 


31.4 
26.9 
8.8 
4.6 
4.2 
4.0 
3.9 
3.1 
2.9 
2.8 
2.2 
2.1 
1.5 
1.5 


31 4 






Confectionery 


67 1 






Boxes, wooden, except cigar... 
Sheetmetal work ... 


75.9 
79 9 


Jewelry 




Ice cream,. 


86 9 






Signs and advertising no velties . 


92.6 


Cotton small wares _ 

Locomotives 

Sewing machines, attachments. 


96.9 
98.4 
99.9 


Group total 


719, 279 


613, 087 




99.9 










Group VII, Decrease, 21.0 percent 
or more; 
Lumber. 


419, 084 
93, 667 
90, 134 
84, 166 
83, 263 

54,947 


323,928 
65,226 
66,814 
56, 879 
63,290 

38,814 


-22.7 
-30.4 
-25.9 
-33.6 
-24.0 

-29.4 


38.6 
8.6 

8.3 

7.7 
7.7 

5.1 


38 6 


Clay products.. 


47 2 


Planing mill products 

Cigars 


56.5 
63 2 


Rubber tires and inner tubes. _ 

Structural and ornamental 

metalwork 


70.8 
70 



Indiistrial Location and National Resources 



87 



Table 1. — Selected industries classified by increase or decrease, 
1929-1937, in average number of wage earners — Continued 



Industry 



Group VII— Continued. 

Engines, turbines, etc 

Marble, granite, slate, etc 

Millinery-- -- 

Ice, manufactured--- .- 

Boots and shoes, rubber 

Instruments and apparatus, 

professional, etc _.- 

Concrete products 

Silverware and plated ware.-. 

Perfumes, cosmetics, etc .- 

Trunks, suitcases, bags, etc --- 

Engraving, steel and copper 

plate and wood- 



Group total. 



Average number 
of wage earners 



43.225 
37,817 
32, 206 
32, 184 
25,669 

22. 977 
16. 605 
16, 735 
13. 109 
11, 359 

10, 272 



1937 



32, 855 
20, 816 
21, 560 
18, 705 
18, 356 

17,399 
12, 840 
11,361 
10. 158 
8,708 

7,831 



1,086,299 794,640 100.0 



Percent 
increase 
or de- 
crease 
1937 
over 1929 



-24.0 
-45.0 
'-33. 1 
-41.9 
-28.5 

1-24.3 
-22.2 
-27.8 

»-22. 5 
-23.3 

-23.8 



Per- 
cent of 
group 
total 
1929 



4.0 
3.5 
3.0 
3.0 
2.4 

2.1 
1.5 
1.4 
1.2 
1.0 

.9 



Cumu- 
lative 
per- 
cent of 
group 
total 
1929 



80.0 
83.5 
86.5 
89.5 
91.9 

94.0 

9.'i.5 
96.9 
98.1 
99.1 

100.0 



* Not elsewhere classified. 

' Percentage increase is understated because of a contraction from 1929 to 1937 in 
the Census of Manufactures' definition of the industry. 

J Percentage increase is overstated because of an expansion from 1929 to 1937 in the 
Census of Manufactures' definition of the industry. 

< A change was made from 1929 to 1937 in the Census of Manufactures' definition 
of the industry, but the net effect of the change is not definitely l^nown. Any up- 
ward or downward bias is probably slight and 1929 and 1937 figures are believed to 
be generally comparable. 

' Percentage decrease is overstated because of a contraction from 1929 to 1937 in 
the Census of Manufactures' definition of the industry. 

' Percentage decrease is overstated because 1937 is not strictly comparable with 1929 
as a result of incomplete coverage of the industry by the 1937 Census. 

Source: Census of Manufactures, 1929 to 1937. 

The importance of each of the seven groups is shown 
in table 2. Industries in group I, in which employ- 
ment increased between 1929 and 1937 by 24 percent or 
more, made up about one-eighth of the total of the 
141 industries in 1929. More than one-fifth of the 
wage jobs were in the industries of group II, and 
over one-seventh in group III. Thus, nearly half of the 
wage earners (49.3 percent) were in industries that 
expanded from 1929 to 1937, and more than one-third 
were in industries that expanded faster than the growth 
of population. 



Table 2. — Absolute and relative number of wage jobs in 7 in- 
dustry groups based on percent change in number of wage 
jobs, 1937 over 1929 



Industry groups 


Number of wage jobs 


Percent of 

United States 

total 




1929 


1937 


1929 


1937 


Group I, increase in wage jobs of more 
than 24.0 percent from 1929 to 1937 

Group U. increase in wage jobs of 6.1 per- 
cent to 24.0 percent from 1929 to 1937... 

Group III , increa.sc in wage jobs of 1 . 1 per- 
cent to 6.0 percent from 1929 to 1937 

Group IV, increase or decrease in wage 
jobs not exceeding 1 percent from 1929 
to 1937 


999. 165 
1, 690, 241 
1, 150, 701 

554,594 
1,594,824 

719, 279 
1,086,299 


1,433,076 
1,972.482 
1,192.318 

651.974 

1.481.666 

613, 087 

794,540 


12.8 
21.7 
14.8 

7.1 
20.6 

9.2 
13.9 


17.8 
24.5 
14. R 


Group v. decrease in wage jobs of 1.0 per- 
cent to 10.9 percent from 1929 to 1937. .- 

Group VI, decrea.se in wage jobs of 11.0 
percent to 20 9 percent from 1929 to 1937. 

Oroup VII. decrease in wage jobs of more 
than 21.0 percent from 1929 to 1937 


18.5 
7.6 
9.9 


United States total 


7, 795, 163 


8,039,143 


100.0 


100 







Industries that were to attain the same employment 
level in 1937 as in 1929 (group IV) accounted for 7 
percent of the wage jobs, while as many as one-fifth 
were in industries that were to sustain a reduction of 
1 to 11 percent (group V). About half as many wage 
jobs as in group V were in industries in which employ- 
ment was to decline by 11 to 21 percent (group VI). 
Finally, industries with the largest relative decreases 
(group VII), included about one-seventh of all wage 
jobs. That is, between 43 and 44 percent of the total 
wage jobs were in declining industries, measured in 
terms of 1929 employment opportunities.' 

Types of Shifts 

Locational shift has been said to occur when the 
change in employment in a given industry in a par- 
ticular State differs in degree from the change in the 
same industry on a national basis. Obviously, loca- 
tional shifts so measured might be into a State or 
away from it. Shifts in either direction, moreover, may 
be further classified. Thus, an industry shift into a 
State may result either from employment in the given 
State increasing at a greater rate than it has in the Na- 
tion at large, or from employment increasing in the 
State while it has declined nationally. These changes 
may be considered as "absolute shifts" into the State; 
they are measured in the former instance by the diifer- 
ence between the actual growth and the State's propor- 
tionate .share of the national increase, and in the latter 
case by the sum of the actual increase and the State's 
share of the national decline. These absolute shifts 
are in contradistinction to "relative shifts" into a State, 
which may be said to occur when an industry that has 
contracted nationally declines at a lesser rate in the 
given State. Despite the actual decrease in wage jobs, 
one may speak of a relative gain (hence, a shift into 
the State) that is measured by the difference between 
the actual number of wage jobs at the end of the 
period and the number that would have obtained had 

= However, for 26 of the Litter industries, representing 40.2 percent 
of the w.ige jobs in groups V, VI, and VII, indexes of physical production 
are available and the.se reveal that 8 of the industries, accounting for 
24 percent of the wage earners in declining industries, cither increased 
production or retained the same level. For these 8 industries the decline 
was limited solely to employment, suggesting that technological changes 
were the predominant cause for the smaller volume of employment 
opportunities rather than a falling demand. These eight industries 
are : Beverages, nonalcoholic ; hats, fur felt ; knit goods, underwear ; 
silk and rayon ; soaps ; ice cream ; confectionery ; and sewing machines 
and attachments. 

The other 18 declining industries in which there was also a decline 
in production are : Blast furnaces ; carpets and rugs ; wool ; cast-iron 
pipe; tobacco (chewing and smoking) and snuff; boots and shoes: 
rublier ; cigars ; ciny products ; concrete products ; ice. manufactured ; 
lumber-mill products, n. e. c. ; plannins-mill production, n. e. c. ; rubber 
tires and inner tubes. Data on changes in physical production of 
manufactures have been adapted from Solomon Fabricant. The Output 
0/ the Manufacturing Industries, 1899-1937, New York, National Bureau 
of Economic Kcsearch, 1940, p. 885 ff. 



88 



National Resources Planning Board 



the State sustained its proportionate share of the 
decline. 

Shifts away from a State can be similarly classified. 
They occur in absolute terms when an industry that 
has been expanding nationally contracts its employ- 
ment in the given State, or when an industry that has 
been declining nationally falls at a greater rate in the 
given State. The extent of the former type of shift is 
the sum of the actual decline and the hypothetical gain 
had the given State received its proportionate share 
of the expansion, whereas the latter type of outward 
shift is measured by the difference between the actual 
decline and that which would have taken place had 
the given State lost proportionately with the Nation. 
The relative outward shift occurs when an industry 
that has expanded nationally has grown at a lesser 
rate in the given State. Although there was an in- 
crease in the number of wnge jobs, with respect to the 
particular industry, the givjn State was losing ground 
in relative terms to other States. This is measured 
by the difference between the actual gain and the 
hypothetical gain had there been a proportionate dis- 
tribution of the national increase in the State con- 
cerned. 

It follows from these definitions that in a given in- 
dustry on a national basis all the wage jobs in inward 
shifts (absolute and/or relative) equal the number of 
wage jobs in outward shifts (absolute and/or relative). 
Thus, for a given industry the total number of wage 
jobs involved in shifts is the total of wage jobs in all 
shifts divided by two. 

With these statistical measures it is proposed to de- 
termine the differentials in locational shifts among 
specific industries. 

General Characteristics of Shifting 
and Nonshif ting Industries 

The degree of change in each industry has been 
measured by totaling all shifts that exceeded 250 wage 
jobs in any State, dividing by two, and expressing this 
quotient as the ratio to the number of wage jobs in 
that industry in 1937. These shift-ratios are presented 
for 139 industries in table 3." For the entire group, the 
median shift-ratio was 8.6 percent, and for nearly two- 
thirds of the 139 industries the ratio was less than 11 
percent. Of more significance is the fact that the 
median ratio for the expanding industries was one- 
third larger than that for the contracting industries, 
10.5 and 7.8, respectively. This is not an unexpected 
result : an industry in which new capacity is being con- 
structed can be shifted more easily than one burdened 
with considerable unused capacity. 

•Ratios could not be computed for liquors, malt, and liquors other 
than malt, since these industries were virtually nonexistent in 1929. 



It will be noted further that for the groups of ex- 
panding industries there was a direct relationship be- 
tween the degree of expansion and the size of the 
median shift-ratio. The smaller the industry in tenns 
of wage jobs the larger the shift-ratio and the per- 
centage expansion which a given number of wage-jobs 
shifts represents; and as previously indicated, the av- 
erage size of the industries in groups I, II, and III, 
was in ascending order.' Since among the declining 
industries there was no similar correspondence between 
size and percentage decrease there was no direct rela- 
tion of percentage decline and median shift-ratio. 



' In other words, among the three groups of expanding industries, the 
group with the highest expansion contained on the average the smallest 
industries, and the media shift-ratio was therefore the largest. 

Table 3. — Classification of 1S9 selected hidustries '■ hy percent 
change from 1929 to 1937 in number of wage earners, by ex- 
tent of locational shifts 1929 to 1937, by coefficient of scatter 
1929, and by wages as a percent of value added by manufac- 
ture, 1937 



Industry 



Grorip I 
(Increase of 24.0 percent or more) 

Shifting industries *: 

Aircraft and parts--- 

Cash registers, adding machines. 

Rayon and allied products 

Leather goods, and handbags '_.. 

Paper goods '" 

Wallboard, gypsum products 

Plastics (synthetic resins etc.) 8 . 

Bags, paper 

Gloves and mittens, cloth 

Motor vehicle bodies and parts.. 

Buttons 

Refrigerators 

Stamped and enameled ware 

Canning, fish, etc 

Housefurnishings and fabricated 

textiles 

Women's clothing 

Wirework s.. : 

Agricultural implements. - 

Chemicals' 

Canning, fruits and vegetables. . 

Nonshifting industries ^; 

Knit cloth 

Typewriters and parts 

Feeds, prepared for animals, etc. 

Lithographing 

Food preparations ^ 

Gloves and mittens, leather 

Sausage, meat puddings, etc 

Photographic apparatus 

Median shift ratio 



Num- 
ber 
of 
wage 
earners 
in 1937 



24, 003 
23. 630 
55, 098 
20, 852 
32,888 
11,590 
16, 673 
10,360 
12, 679 
284,814 
12,026 
60,623 
61,092 
IS, 229 

23, 894 
242, 879 
33, 471 
77, 512 
78, 951 
137, 064 

11,360 
21,440 
14,397 
24. 079 
16, 794 
11.637 
10,217 
18,450 



Number 

of wage 

earners in 

locational 

shifts 
1929-37 « 



11.930 
5.368 

11.432 
4,080 
6.235 
2,079 
2,809 
1,673 
2,038 

45, 689 
1,864 
7,810 
8,863 
2,584 

3,277 
27, 142 
3.586 
8,296 
6,126 
10, 512 

1,234 

2,220 

1,345 

1,935 

748 

258 

154 

139 



Wage 
earners 
in loca- 
tional 
shifts as 
a percent 
of 1937 
total 
(shift 
ratio) 



49.7 
22.7 
20.7 
19.6 
19.0 
17.9 
16.8 
16.1 
16.1 
16.0 
15.5 
15.4 
14.5 
14.2 

13.7 
11.2 
10.7 
10.7 
7.8 
7.7 

10.9 
10.4 
9.3 
S.O 
4.5 
2.2 
1.5 
.8 
14.2 



CoefB- 

cient 

of 

scatter ' 



Wages 

as a 
percent 
of value 
added 

by 
manu- 
fac- 
tures, 
1937 



49.3 
32.0 
37.5 
44.6 
30.7 
25.9 
43.3 
33.8 
56.1 
54.7 
52.1 
42.3 
50.1 
29.3 

37.7 
46.2 
45.5 
43.8 
24.5 
31.9 

44.7 
82.3 
20.6 
43.0 
19.8 
60.0 
38.1 
36.5 



1 Since the liquors, malt and liriuors, other than malt industries were nonexistent 
in 1929, there would be no locational shifts between 1929 and 1937, and hence they 
have been excluded from this table. 

! Excluding shift.s in any State of less than 250 wage jobs. 

' The-coetRcient of scatter is the number of States that accounted for at least 75 
percent of the wage jobs in a given industry. 

* Shirting industries are those with more than 2,500 wage jobs in locational shifts 
whose shift-ratios are at)ove the first quartile, and those with less than 2.500 wage 
jobs in locational shifts but whose shift ratios are in the fourth quartile. 

i Not elsewhere classified. 

• 1931 figure. 

^ Nonshifting indtistries are those with less than 2,.')00 wage jobs in locational shifts 
whose shift ratios are below the fourth quartile, and industries with more than 2,500 
wage jobs in locational shifts but whose shift ratios |are in the first quartile. The 
foundry and machine shop production industry has been excepted from this rule 
and has been considered as a shifting industry because of the absolute size of the 
locational shift, even though its shift ratio falls in the first quartile. 



livd'ustrial Location and National Resources 



89 



Table 3. — Classificaiion of 139 selected industries by percent 
change from 1929 to 1937 in number of wage earners, by ex- 
tent of locational shifts 1929 to 1937, by coefficient of scatter 
1929, and by wages as a percent of value added by manufac- 
ture, 1937 — Continued 



Table 3. — Classification of 139 selected industries by percent 
change from 1929 to 1937 in number of wage earners, by ex- 
tent of locational shifts 1929 to 1937, by coefficient of scatter 
1929, and by wages as a percent of value added by manufac- 
ture, 1937 — Continued 



Industry 



Group II 

(Increase of 6. to 23. 9 percent) 

Shifting industries; 

Wire drawn from purchased rodS- 

Pulp, wood and other fibre 

Wrought pipe. - - 

Mirrors and other glass products. 
Pumps and pumping equip- 
ment 

Cutlery and edge tools 

Ship and boat building 

Woolen goods 

Aluminum products 

Hosiery 

Cigarettes _. - 

Men's clothing, total 

Rubber goods, other 

Glass 

Boxes, papers 

Steel works and rolling mills... 
Paper 

Nonshiftine industries: 

Wood turned and shaped 

Corsets and allied garments 

Optical goods 

Mattresses and bedsprings 

Clocks, watches, etc 

Machine tool accessories 

Screw machine products and 

wood screws. 
Bread and other bakery prod- 
ucts 

Paints 

Median shift ratio 



24,580 
26,994 
14, 125 
12, 652 

28,320 
16,830 
62,274 
67,264 
23,695 

150,460 
26, 149 

317,517 
48, 172 
79, 051 
65. 158 

479, 342 

110,809 

23,087 
16,385 
11,998 
19, 165 
23,223 
32, 893 
21,287 



239,388 
31,664 



Group III 
(Increase of 1. to 5. 9 percent) 

Shifting industries: 

Hardware'.. 

Knit outerwear. 

Bookbinding and blank book 
making 

Nonferrous alloys and products *. 

Cars, electric and steam railroad. 

Boots and shoes, other than 
rubber 

Tin cans and other tinware 

Heating and cooking apparatus.. 

Meat packing, wholesale 

Worsted goods 

Xonshifting industries: 

Toys, games and playground 
equipment 

Cottonseed products 

Drugs, etc... 

Bolts, nuts, washers, etc 

Petroleum refining 

Leather... 

Printing and publishing, news- 
papers and periodicals 

Sporting and athletic goods 

Butter 

Caskel.s, coffins, etc 

Bags, other than paper 

Medium shift ratio 



Group IV 
(Increase of 0.9 percent or less to 
decrease of 1.0 percent or less) 

Shifting industries: 

Cotton goofls 

Machine tools 

Nonsbifting industries: 

Sugar refining, cane 

Smelting and reflning, copper.. 

Fertilizers 

Photoengraving 

Coke.. 

Median shift ratio 



Num- 
ber 
of 
wage 
earners 
in 1937 



53.000 
29,321 



25, 333 
83,016 
40, 466 

215,438 
33, 145 
89,287 

127, 477 
90,782 



17,547 
16,583 
28,417 
16,840 
83,182 
50,687 

135, 215 
11,392 
19, 437 
13, 678 
12, 075 



422, 310 
47,266 

14,024 
14, 514 
20,893 
12,364 
20,603 



Number 

of wage 

earners in 

locational 

shifts 
1929-37 



5,137 
6,430 
2,634 
2,029 

4,465 
2.516 
8,278 
8,078 
2,848 

17,952 
3,067 

36, 919 
5,092 
6,324 
4,912 

33, 398 
7,180 

2,478 
1,024 
933 
1,397 
1,682 
1,798 
1,138 



7,847 
810 



8,087 
3,936 

3.188 
7,877 
3,762 

IS, 492 
2.604 
7.018 
9.450 



2,006 
1,398 
2,376 
1,238 
3,747 
1,948 

4,396 
280 
322 



54,904 
4,300 

1.670 

1,008 

1,104 

605 



Wag* 
earners 
in loca- 
tional 
shifts as 
a percent 
of 1937 
total 
(shift 
ratio) 



Coeffi- 
cient 
of 
scatter 



20.9 
20.1 
18 6 
16.0 

15.8 
14.9 
13.3 
12.0 
12.0 
11.9 
11.7 
11.6 
10.6 
8.0 
7.6 
7.0 
6.5 

10.7 
9.9 

7.8 
7.3 
7.2 

5.5 
5.3 



3.3 

2.6 

10.65 



15.3 
13.4 

12.6 
9.5 
9.3 



7.9 
7.9 
7.4 
7.4 



11.4 

8.4 
8.4 
7.4 
4.5 

3.8 

3.3 
2.5 
1.7 



7.9 



13.0 
9.1 

11.9 
6.9 
5.3 
4.9 
3.4 
6.9 I 



Wages 

as a 
percent 
of value 
added 

by 
manu- 
fac- 
tures, 
1937 



41.6 
35.9 
43.0 
29.6 

35.0 
37.6 
62.9 
52.7 
45.9 
67.6 
12.3 
fA.\ 
44.1 
41.1 
38.6 
52.1 
36.4 

52.1 
34.7 
43.9 
39.7 
46.4 
48.3 
46.7 



42.1 
18.9 



49.4 
46.7 

44.8 
41.7 
54.5 

54.3 
32.7 
43.1 
42.5 
55.6 



42.9 
18.3 
10. S 
4L2 
29.1 
54.0 

22.1 
51.8 
24.6 
39.6 
36.9 



57.2 
43.0 

25.8 
29.8 
23.4 
46.4 
39.2 



Industry 



Group V 
(Decrease 1.0 to 10.9 percent) 

Shifting industries: 

Silk and rayon goods 

Dyeing and finishing 

Knit underwear. - 

Carpets and rugs, wool 

Beverages, nonalcoholic 

Textile machinery and parts 

Pottery 

Electrical machinery and radios 
Foundry machine-shop products. 

Nonshifting industries: 

Cooperage 

Tools, not including edge or 

machine tools 

Smelting and refilling, ziac 

Cordage and twine. 

Plumber's supplies... 

Hats, fur-felt i 

Lightiug equipment 

Soap 

Boot and shoe, cut stock and 

findings 

riour 

Envelopes 

Cast iron pipe 

Printing and publishing, book 
and job 

Tobacco and snuff 

Blast furnaces 

Wood preserving 

Median shift ratio 



Group VI 
(Decreases of 11.0 to 20.9 percent) 

Shifting industries: 

Motor vehicles 

Boxes, wooden, except cigar 

Furniture 

Confectionery 

Nonshifting industries: 

Forgings 

Locomotives 

Sheet metalwork 

Signs and advertising novelties . . 

Cotton small wares 

Sewing machines, attachments. 

Ice cream.. 

Cement-. 

Fur goods 

Jewelry 

Median shift ratio 



Group VII 
(Decrease of 21.0 percent or more) 

Shifting industries: 

Boots and shoes, rubber 

Instruments and apparatus 

Engines, turbines, etc. : 

Cigars 

Rubber tires and inner tubes . . 

Structural and ornamental work 

Planing mill products 

Lumber 

Clay products 

Nonshifting industries: 

Perfumes, cosmetics, etc 

Silverware and plated ware 

Millinery 

Engraving, steel, copperplate 
and wood 

Trunks, suitcases, bags, etc 

Concrete prntlucts 

Ice. manufactured 

Marble, granite, slate, etc 

Median shift ratio 



Num- 
ber 
of 
wage 
earners 
in 1937 



116.839 
77.545 
39. 923 
30, 779 
27, 979 
25. 340 
33.060 
308. 551 
432, 982 

9,588 

17,612 
11,265 
14,043 
25,240 
15,926 
21, 743 
14,008 

18,755 

26.390 

9,511 

17.613 

141.368 
10,130 
23,075 
12, 401 



194, 527 
25,981 

170, 072 
53,722 

18,255 
9,000 
22,973 
16,042 
12.616 
9.019 
18.664 
26,426 
12, 952 
22,838 



18,356 
17,399 
32. 855 
55. 879 
63.290 
38,814 
66,814 
323.928 
65,226 

10.158 
11.361 
21,500 

7,831 
8,708 
12,840 
18.705 
20.816 



Wage 

I earners 

Number in loca- 

of wage i tional 

earners in shifts as 

locational a percent 



shifts 
1929-37 



30, 511 
16,490 
7,082 
4.003 
2,915 
2.542 
3.124 
23,964 
27.409 

1,003 

1,809 
1,067 
1,150 
2,054 
1,212 
1,694 
940 

1,244 
1,224 

468 
814 

5,151 
353 
564 
268 



33,502 
4,250 

12. 455 
3,928 

2,012 
705 

1,786 

1,246 
840 
572 
944 

1,322 
446 
296 



5,516 
4,632 
7,928 
7,117 
7,913 
4,042 
6,905 
22.000 
4,802 

1,296 
1,155 
1,877 

580 
462 
280 



of 1937 
total 
(shift 
ratio) 



26.1 
21.3 

17.7 
13.0 
10.4 
10.0 
9.4 
7.8 
6.3 

10.5 

10.3 
9.5 
8.2 
8.1 
7.6 
7.8 
6.7 

6.6 
4.6 
4.9 
4.6 

3.6 
3.5 
2.4 
2.2 

7.8 



17.2 
16.4 
7.3 
7.3 

11.0 
7.8 
7.S 
7.8 
6.7 
6.3 
5.1 
5.0 
3.4 
1.3 
7.3 



30.1 
26.6 
24,1 
12.7 
12.5 
10.4 
10.3 
6.8 
7.4 

12.8 
10.2 

8.7 

7.4 
5.3 
2.2 
2.0 
L9 
10.2 



Coeffi- 
cient 
of 
scatter 



Wages 

ass 
percent 
of value 
added 

by 
manu- 

fac- 
tures, 

1937 



59.1 
61.0 
52.7 
41.0 

18.9 
46.0 
5.5.9 
37.0 
42.5 

52.0 

43.0 
41.8 
41.2 
48.0 
36.6 
41.8 
16.5 

48.5 
22.6 
40.1 
50.7 

37.1 
18.8 
29.8 
3.5.3 



45.0 
47.7 
49.3 
35.3 

46.5 
45.0 
40.0 
40.0 
51.9 
52.7 
15.4 
30.1 
43.8 
43.8 



65.1 
35.4 
47.0 
45.8 
46.3 
43.8 
49.1 
54.7 
50.0 

U.9 
40. S 
48.7 

46.5 
46.7 
33.9 
19.8 
47.2 



414786—43- 



90 



National Resources Planning Board 



To simplify the study, those industries in whicli tlie 
vokmie of shifts fell below a certain level were clas- 
sified as nonshifting. For the 139 industries the me- 
dian number of wage jobs in shifts was 2,516. All 
industries with shifts of less than the median number 
were considered as nonshifting industries, unless the 
shift ratio was in the top quartile. Similarly, indus- 
tries with shifts greater than the median number were 
regarded as shifting industries, unless the shift ratio 
was in the bottom quartile.^ On this basis there were 
67 nonshifting and 72 shifting industries. (See table 4.) 
Since, by definition, the shifting industries were (with 
few exceptions) those in which the number of wage jobs 
in shifts exceeded 2,516, it is natural that the shifting 
industries tended to be the larger ones.' These in- 



Table 6. — Distribution of 139 selected industries by ratio of 
wages to value added 6j/ manufacture, 19S7 



^ There was one exception to the application of this procedure. In 
foundry and machine sliop production, wage jobs in shifts numbered 
27,400, the sixth largest shift. Although its shift ratio was only 6.3 
percent, because of the absolute size of the shift, it was regarded as 
a shifting industry. 

" This is evident from table 4, for in each group the shifting indus- 
tries accounted for an appreciably larger proportion of the number of 
wage jobs than of the number of industries. • 

Table 4. — Absolute and rcliilivc nimiber of iraye jobs in shift- 
i)ig industries and absolute and relative number of shifting 
industries classified by percent change in uage jobs, 1929-37 



Industries, by percent 
change in wage jobs, 
1929-37 



+24.0 or over.. 
+6.Uto -1-23.9.. 
-1-1.1 to +5.9.. 
+1.0 to -1.0... 
-1.1 to -11.0-. 
-11.1 to 20.9... 
—21.0 or over.. 



All industries 7,794,977 6,076, 



Total 
number 
of wage 
jobs 1929 



998. 979 
1,690,241 
1, 150, 761 

554, 594 
1, 594, 824 

719,279 
1, 086, 299 



Number 
of wage 

jobs in 
shifting' 

indus- 
tries, 1929 



905, 658 
1.332,912 
760, 040 
472, 307 
1, 174,487 
513, 570 
917. 112 



Wagejobs 
in shifting 
industries 
as percent 
of total 
1929 



90.6 
78.9 
66.0 
85.2 
73.6 
71.4 
84.4 



Total 
num- 
ber of 
indus- 
tries 



Num- 
ber of 
shift- 
ing 
indus- 
tries 



Shift- 
ing 
indus- 
tries as 
percent 
of total 



72 



72.4 
65.4 
47.6 
28.6 
36.0 
28. 6 
52 9 

61.8 



1 For definition of shifting industries, see footnote 4, table 3. 



Table 



-Distribution of 139 selected industries according to 
degree of geographic scatter ' 





Number of mdustrics 


Coefficient of scatter 


Total 


Shifting 
industries 


Nonshifting 
industries 


1 


1 
6 
9 
17 
23 
20 
14 
9 
16 
4 
5 
4 
2 
2 
4 




1 


2 


1 
6 
8 
17 
13 
5 
7 
8 
3 
1 


5 


3 


4 


4 


9 


5 


6 


6 

7... 


7 
9 


8 


2 


9 

10.-- 


7 


11 


4 


12 


4 


13 


1 


1 


14 


2 


15... 




4 


16. 






17 


2 
2 


1 
2 


1 


18 








Total . . 


139 


72 


67 









Type of industry 


Total 
num- 
ber of 
indus- 
tries 


Percent of industries by ratio of wages to 
value added by manufacture 


10 to 
19.9 


20 to 
29.9 


30 to 
39.9 


40 to 
49.9 


50 and 
over 


Shifting industries '.- 

Nonshifting industries' 


72 
67 


2.8 
13.4 


5.6 
13.4 


20.8 
17.9 


43.0 
41.9 


27.8 
13.4 



' For definition of shifting and nonshifting industries see table 3. 

dustries also expanded to a greater extent than did the 
entire group of industries.^" 

There are two other important respects in which 
there were differences between the shifting and non- 
shifting industries. The first relates to the degree of 
geographic scatter. (See table 5.) A rough, but 
adequate, measure for each industry is the number of 
leading States that account for at least 75 percent of 
total wage jobs. The higher the coefficient, the higher 
the degree of scatter.'^ The most significant fact re- 
vealed by the distribution of this measure is the large 
proportion of nonshifting industries which were con- 
centrated in a few States or which were significantly 
dispersed. Thu.s, 6 industries had a coefficient of either 
1 or 2, and 17 had a coefficient of 10 or higher. Among 
the shifting industries, on the other hand, only one 
induistry had a coefficient of 1 or 2, and only 8 industries 
had a coefficient of 10 or higher. In other words, the 
shifting industries were to lesser degree highly concen- 
trated or widely distributed. As will appear below, 
this difference reflects in part the operation of particu- 
lar location factors. 

The other noteworthy respect in which the two 
groups of industries differ is in the ratio of wages to 
value added (table 6). A frequency distribution of 
these ratios indicates that the ratio tended in general 
to be higher for the shifting industries,^- suggesting 
that differentials in labor cost were j^robably a factor 
in manv shifts. 



1 See tabic 3 for definition of coefficient of scatter, and shifting and nonshiftmg 
industries. 



1° While 55 percent of the 139 industries were classified as expanding. 
as many as 68 percent of the shifting industries were so classified. 

'^ It might appear that a coefficient of 36 (or three-fourths of the 
States) would represent a uniform scatter. Actually, this is not the 
case, for the first 14 States in population (beginning with New York) 
contain 75 percent of the national total, and an industry whose distribu- 
tion conformed perfectly with population would therefore have a coeffi- 
cient of 14 also. Inspection of table 5 shows that the modal coefficient 
for the 139 industries is actually only 5. 

Such a crude measure obviously does not take into account the de- 
gree of scatter (or concentration) among the States representing three- 
quarters of the industry, but it is easy to compile and, for the purpose 
in hand, adequate. A more precise measure of concentration, called a 
cofffi -lent of localization, has been devised by Professor P. Sargent 
Florence. (See ch. 5.) 

'- Thus, 8 percent of the former had ratios of less than 30 compared 
with 27 percent of the nonshifting industries (table 6). At the other 
end of the distribution, the percentages were more nearly reversed with 
28 percent of the shifting industries having ratios of 50 or higher 
compared with 13 percent of the nonshifting industries. 



Industnal Location and National Resources 
Causes of Locational Shifts 
Nonshifting Industries 

To analyze the reasons why industries shift, it may 
be helpful to consider the negative side first, i. e., to 
discover why some industries have maintained approxi- 
mately the same geographic pattern. 

Among the industries that are market -oriented, some 
use virtually ubiquitous materials and are restricted 
to local markets. The products of such industries can- 
not be transported for long distances, owing either to 
their perishability or to their small value in compar- 
ison to bulk and weight. Accordingly, the location of 
tliese industries is bound up with the location of urban 
populations. Since there was no major shift in the 
urban population between 1929 and 1937, these indus- 
tries moved little and continued to be widely scattered. 

The market for each producer of ice, ice cream, and 
bread, for examjjle, is narrowly circumscribed, mainly 
because of perishability of the product, and in recent 
j-ears has shifted little. In this category, too, may be 
placed the printing and publishing of newspapers and 
of job printing inasmuch as their products are also, in 
a special sense of the word, perishable. The printing 
.service industries tend to be closely associated geo- 
graphically with printing itself. Consequently litho- 
graphing, engraving (including photo-engraving and 
steel, copperplate, and other engraving), and the pro- 
duction of signs and advertising novelties fall also 
among the nonshifting industries. 

Illustrative of those industries with liighly restricted 
markets due to the small value of the product in rela- 
tion to its bulk and weight are bags, other than paper, 
not made in textile mills; wood pi-eserving; cement, 
claj- products, ordinary grades of marble, granite, slate, 
etc.; concrete products; mattresses and bedsprings; 
sheetmetal work : j'ellow pine cooperage material : bulky 
feeds prepared for animals and fowls. It should be 
noted that for all but 3 of the 20 industries with rather 
narrow!}- cii'cumscribed markets there was a consider- 
able scatter (coefficient of 9 or higher). Nor were the 
three excepted industries, those subsidiary to printing 
publishing, highly concentrated (coefficients of 6 or 7). 
The nonshifting industries that are market -oriented 
include a number for which the markets are not closely 
delimited, since the products can be economically trans- 
ported over major marketing areas. Shifts in these 
industries would be largely dependent on shifts in the 
major marketing areas or on rather substantial reduc- 
tions in transportation costs, neither of wjiich hap- 
pened during the period under study. Markets here 
may consist either of the ultimate consumer or of other 
industries. The bulk of both are in the same geo- 
graphical areas; i. e., in the manufacturing belt of 



91 

lower New England, Middle Atlantic, and Miildle 
States with the addition of California. Accordingly, 
the industries in this category continued to carry on 
much the larger share of their production in those 
States. They comprised paints; sporting and athletic 
goods; toj's, games, and playground e(iuipment : trunks, 
suitcases, and bags; forgings; perfumes and co.smetics; 
drugs; plumbers' supplies; lighting equipment; cordage 
and twine; machine-tool accessories; screw machine 
products and wood screws; bolts, nuts, and washers, 
etc.; tools, not including edge or machine tools. For 
these 15 industries, the measure of scatter varied from 
5 to 9, a sufficient number of States for the bulk of 
each industry to allow it to Tserve major marketing 
areas. 

Still other nonshifting industries, all of them con- 
sumers' goods industries, were market-oriented but 
highly concentrated, partly because the products could 
be transported long distances and partly because it has 
been an advantage to operate close to important style 
centers. The development of a specialized labor supply 
at these long-established locations is another factor 
militating against shifts. In this category might be 
placed leather gloves and mittens; fur goods; hats, fur 
felt; millinery; and corsets and allied garments. Each 
of these five industries in 1929 was concentrated in a 
few States (scatter coefficients from 2 to 4; see table 3). 
Industries. .*uch as cotton small Mares and knit cloth, 
which produce materials largely for the needle tiades, 
find it advantageous to be located close to the center 
of these trades. Despite the considerable amount of 
.shifting in the needle trades, metropolitan New York 
has remained the most important center largely on 
account of the style factor. Somewhat similar consid- 
erations have kept cut stock and findings near tlie boot 
and shoe industry. 

Cane sugar refining, with a coefficient of 4, is 
restricted, in the main, to a few major market areas 
because the locations providing good harbor facilities 
for receiving raw materials from abroad are, in most 
cases, large centers of population. Since there had been 
no shift in major markets there has been no change in 
the location of the refineries.^' 

A number of the nonshifting industries are primarily 
raw-material oriented. Since the sources of these ma- 
terials remained the same, the industries did not shift. 
In some cases the materials were scattered, as in flour 
milling ( witii a scatter coefficient of 15), or wood, turned 
and shaped (coefficient 12) or miscellaneous food prepa- 
rations (coefficient 10). Other industries in this cate- 
goi-y were fci'tilizers (coefficient 9). leathei'. coke, and 



" Sugar rotinin;; linscd on domestic rnne is restricted maiiilj to 
Louisinnn. 



92 



National Resources Planning Board 



cottonseed products (coefficient 7). In other cases, 
however, the sources were rehitively concentrated, as in 
blast furnaces and cast iron pipe, as well as in the 
smelting and refining of copper and zinc (industries 
for which the coefficient was either 4 or 5). In the 
two last-named cases the establishments are found 
either in the mining areas or in cities with harbor 
facilities to receive ore from abroad, that is, in loca- 
tions determined by either raw materials or markets. 
Petroleum refining has also been subject" to the same 
dual locational considerations. It has been carried 
on either at the oil fields, termini of pipe lines, or at 
harbors that can accommodate tanker fleets and are 
also excellent distribution centers for the refined 
products. 

Finally, the nonshifting industries included some 
that were geographically concentrated, mainly because 
the demand for their output could be supplied by rela- 
tively few establishments and the products themselves 
were easily transportable. In this category were photo- 
graphic apparatus ^^ with a concentration in one State ; 
optical goods, typewriters and parts, and locomotives 
not made in railroad repair shops, with concentrations 
in two States; clocks and watches and sewing machine 
attachments, with concentrations in three States; and 
silverware and plated ware, with a concentration in 
four States. This series of industries, especially the 
watch and optical goods manufactures, is also depend- 
ent upon a skilled labor supply which has remained 
highly localized, a factor which tends further to make 
the location of the industries self-perpetuating. There 
is little evidence of locational shifts in these industries, 
even over longer periods than the one here under 
survej'. 

In resume, then, the 67 nonshifting industries com- 
prise those which serve markets highly restricted geo- 
graphically, those that must remain oriented toward 
the major consumers' and industrial markets (which 
did not shift), those based on raw materials (the loca- 
tion of which remain unchanged) , and those dependent 
on very specialized skills that could not be readily 
developed elsewhere. 

Shifting Industries 

It is evident from the foregoing that the shifting 
industries were those that were tied either to labor 
which became cheaper in new locations because of 
technological changes or otherwise ; or to raw materials 
that shifted their location; or to specialized markets 
that were altered either in character or situation. It is 



" Since the manufacture of photographic apparatus has been largely 
controlled by one company, the location of the industry has not been 
subject to competitive forces. This does not imply that this location 
has not been economically sound. 



necessary to examine in some detail the geographic 
changes involved in movements of particular industries 
for whatever clues they provide to the specific reasons 
underlying the shifts themselves. These changes are 
de.scribed in terms of the types of shifts, defined above 
as absolute and relative inward shifts and absolute and 
relative outward shifts. 

Labor-Cost Differentials 

As already noted, the ratio of wages to value added 
varies significantly between the shifting and nonshift- 
ing industries. Obviously, every industry with a high 
ratio labor cost can not seek a location Mith lower unit 
labor costs, for some industries are more closely tied to 
raw materials or markets; nor do alternative locations 
with lower unit labor costs always exist, for some 
industries are dependent upon highly specialized skills. 
Nevertheless, the higher the ratio of wages to "value 
added," the greater will be the pressure upon labor 
costs. One way of relieving such pressure is to go 
where unit labor costs are lower. Thus, in more than 
one-quarter of the shifting industries, 19 out of 72, it 
would seem that differentials in labor cost were the 
most important single factor in determining the shifts, 
though not necessarily in determining the original loca- 
tion. These 19 industries, moreover, included no less 
than 9 with the ratio of wages to "value added" of 50 
or higher. 

Low-wage areas, of course, are relative and vary with 
the given industry. Thus, the older New England tex- 
tile centers were high-wage areas for the cotton goods 
industry but low-wage areas for silk and rayon or for 
knit goods. In general, however, low-wage areas in- 
cluded certain parts of New England, smaller com- 
munities of New Jersey and Pennsjdvania not too 
distant from New York City, and the Southeast. 

Shifts to the latter region have received the most 
attention. This would seem justified, at least for those 
19 industries that shifted primarily to take advantage 
of differentials in labor cost. The more important in- 
stances ^° in those 19 industries are presented by States 
and type of shift in tables 7, 10, and 13. In the 2 
former tables are the 12 industries in which the shifts 
to the South were more or less prominent. While the 
shifts in the first three industries listed (cotton, furni- 
ture, and hosiery) were almost entirely southward, im- 
portant shifts in the remaining 9 industries occurred 
into northern as well as into Southern States. 

Perhaps most conspicuoug were the locational 
changes in the cotton goods industry, which are well 
known. Although the movement southward from the 
New England and Middle Atlantic States has been 



" Shifts involving 750 or more wage jobs in any State. 



Industrial Location and National Resources 93 

Table T. —Major locational shifts in lalor oriented industries that shifted predominantly to the Sovtheast, 19S9-S7, by State and type of shift ' 





Percent 
change in 
wape jobs 
in United 
States, 
1929-37 


Outward shifts 


Inward shifts 


Industry 


State 


Number of wage jobs in- 


State 


Number of wage jobs in- 




Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Uelalive 
shifts 




-0.6 

-12.1 

+16.1 
^10.4 




27,899 
10,068 
6,524 
3,951 
1.775 
1,170 
1,662 

3,536 
3,195 
1.788 
1,086 
1.031 
10, 224 
2,721 




Georgia 


14,202 

12,865 

10,109 

9,701 

4,375 

1,598 

917 

808 

3 069 

2,979 

1,429 

1,026 

11,261 

2,988 

1,483 

960 

10,803 
7,000 
5,780 
2,551 
1,622 
1,539 








































Virginia 


















Texas _ _ 










Mississippi 






North Carolina 






Illinois 














Ohio 










South Carolina 










North Carolina .- 




Hosiery 


Pennsylvania 




















1,006 


Virginia 








1,001 
779 
13. 940 
8.983 
3,749 
2,580 












Nnrl.h Cftfnlinft 


















South Carolina 




















Virginia.- 



























I Major shifts are those that involve 750 or more wage jobs in any State. For a definition of types of shift, see p. 87. 



Table 8. — Regional occupational differentials for males in wood 
household furniture industry, October 1937 



Average hourly earnings 



Occupation 




Assemblers, miscellaneous skilled 

Upholsterers- 

Sprayers--- 

Sanders, belt 

Sawyers, band 

Craters, packers, and wrappers _ 

Polishers and rubbers 

Helpers, woodworking machine operators 
Laborers, general 



Source: The Wage and Hour Struclure of the Furnilure ^lanvfacturinQ Industry, Octo- 
ber 1937. V. S. Bureau of Labor Statistics Bulletin No. 6C9 (1640) p. 72. 

underway for several decades, it continued in substan- 
tial volume during this period. The wage rate differ- 
entials that underlay these changes have been ade- 
quately analyzed elsewhere." 

In furniture making, a nationally declining industry 
in terms of wage jobs, the outward shifts, with the 
exception of those from New York, were mainly con- 
fined to the Middle Western States of Michigan, Illi- 
nois, Wisconsin, and Indiana. There was an absolute 
inward shift, however, into Ohio, not because of differ- 
entials in labor cost but rather because of the increased 
use of metal office furniture. In the manufacture of 
wood furniture the absolute inward shifts were larger 
and occurred in the Southeast. The extent of the 
regional differential in labor cost, as reflected in aver- 
age hourly earnings for selected occupations in Octo- 
ber 1937. is set forth in table 8. 



'•See chap. 11. as well as A. F. Ilinriolis and Ruth Clem, "lli.'storical 
Review of Wage Rates and Wage IJiCferentlals in the Cotton Textile 
Industry," Monthly Labor Revietc, vol. 40, No. 5, May 1935, p. 1171. 



Tabu: 9. — Average hourly earnings in the full-fashioned hosiery 
industry by districts (all occupations combined) for specified 
years 



Producing district 



NOBTH 

Philadelphia 

Reading 

Other Pennsylvania 

West -- 

New York, New Jersey, and New England 

SOUTH 

North Carolina... 

other South . 




623 
545 



1 George W. Taylor and L. P. Goodman, Recent Changes in Hourly Earnings of 
Employees in the llosierii Indttsfry, 193ti, p. 9. 

2 Unpublished figures from U. S. Department of Labor, Bureau of Labor Statistics. 

It will be noted that in the hosiei-y industry, as in 
the furniture industry, the largest inward shifts were 
into North Carolina. B}' far the largest outward shift 
was from Pennsylvania, chiefly out of Philadelphia and 
Heading. The wage differentials (average hourly earn- 
ings) on which the shifts appear to have been based 
are presented in table 9. 

In the remaining nine industries reported in tables 
7 and 10, movements into the South figured promi- 
nently in shifts but not more so than some of the 
Northern States. The decline in the silk and rayon 
industry was confined to the production of silk woven 
goods, which was occasioned by the development of 
rayon as a cheaper substitute. The rayon weaving in- 
dustry developed not in the silk centers of New Jersey, 
Pennsylvania, and New York, but partly in tlie new 
textile centers of the South and partly in the old 
textile centers of New England, in both of which labor 
could be secured at cheaper rates tiian in the silk in- 
dustry areas. The converse trends in the two indus- 
tries thus brought about substantial outward shifts 



94 



National Resources Planning Board 



from the three Middle Atliuitic States and inward 
shifts to New England and the South.'" 

The manufacture of rayon and allied products ex- 
panded so rapidly that the relative outward move- 
ments in the industry were substantially larger than 
the absolute outward shifts. In fact, the only such 
shifts of consequence were from New York and Ohio. 
Relative outward shifts, i. e., expansion at lesser rate 
than the entire industrj', were found in Pennsylvania, 
Virginia, and Tennessee. The most important inward 
shifts were in Maryland, involving about 6,800 wage 
jobs, and nearly 1,600 in West Virginia. In the South- 
east there were inward shifts of about 1.500 in North 
Carolina and 550 in Georgia. These changes appear 
to be related to regional differences in wage costs (table 

11). 

Shifts in the manufacture of woolen goods were 
mainly among the New England States and to the 
Southeast, with small shifts in both directions in the 



"The decline in the middle Atlantic States is somewhat overstated 
because of a change in classification. Dyeing and finishing departments 
in silk and rayon mills were classified in the dyeing and finishing in- 
dustry in 1937 but not in 1929. 



Table 11. — Average hourly earnings in rayon and other syn- 
thetic yarn m.anufa<:turing, by occupation and region. 1932^ 



Occupation 



Spinners, male 

Twisters and Throwers, female 

Reelers and Lacers. female 

Winders, Cone, Quill, Cop, or Bobbin, female. 

.Skein Inspector, female 

Truckers and Handlers, male 



New Ens- 
land Dis- 
trict I 



0.422 
.271 
.266 
.261 
.252 
.291 



Middle 
East Dis- 
trict 2 



0.551 
.316 
.359 
.289 
.317 



Southeast 
District 3 



0.428 
.248 
.278 
.263 
.302 



Source: "Wages and Rours of Labor in Rayon and other Synthetic Yam Manu- 
facturing, 1932," U. S. Bureau of Labor Statistics, Monthly Labor Reciew, March 
1933. 

' The only data available on labor cost differentials are average hourly earning^ 
in 1932. Three districts are distinguished: District 1 includes 1 plant in each o' 
New Hampshire. Massachusetts, Rhode Island, and Connecticut; District 2 refers 
to 2 plants in New York, 2 in Ohio, and 1 in Pennsylvania, and I in Delaware; District 
3 covers I in Maryland, 4 in Virginia, 3 in Tennessee, 1 in North Carolina, and 1 in 
Georgia. 

Middle Atlantic and Middle States. These movements 
appear to have resulted from attempts to cut wage 
costs. 

Somewhat similar were developments in men's 
clothing or certain branches of this industry group, 
more particularly the less stylized product.s such as 
shirts, work clothing, washable trousers, and acces- 
sories. Although this was aji expanding industry, 



T.4BLE 10.- 



-Major locational shifts in labor-oriented industries that shifted to the southeast and northeast, 1939 to 1937, by State and type 

shift ' 





Percent 
change in 
wage jobs 
in United 

States, 
1929-37 


Outward shifts 


Inward shifts 


Industry 


State 


Number of wage jobs in- 


State 


Number of wage jobs in- 




Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Relative 
shifts 


Men's clothing.. 


+14.0 

+4.8 

+40.9 

+15.0 
-33.6 

-.3.8 

+43.7 
+36.6 


New York 


20, 2.'i2 
7.296 
1,511 
1,480 






6,327 
5, 775 
5,490 
3.776 
3,103 
2,.'i80 
2,072 
1,242 
1,223 
977 
909 
3.160 
2,471 
2,246 
2,012 
1,964 
1,682 
1,230 
877 
846 
6,791 
1,561 
1,473 






Illinois 


Tennes.see.._ 

Mississippi.. 

Virginia 






Wisconsin 






Minnesota.. 








Ohio 


1.098 
1,034 


Massachusetts 






Maryland 








Michigan _.. 


792 

11,017 
5,082 
1,206 
1,148 


Connecticut 






Massachusetts,. . 




Kentucky.. _ 






Alabama.. 






North Carolina. 






South Carolina 




Boots and shoes, other than 






rubber. 


New York 




New Hampshire 






Wisconsin 










Kentucky , 




Pennsvlvania. 






Virginia _ 


3,845 
2,356 


Ohio 






Virginia 






niinois. 

Georgia ... .. 














Rayon and allied products 


Marvland 






Pennsylvania 




West Virginia 






New York 


2,206 
1,298 


North Carolina 






Ohio 










Tennessee 


_ 1, 038 








Woolengoods... 


Massachusetts 


4,413 

1,116 

875 


Vermont 


1,855 
1,477 
1,354 






Connecticut 










Rhode Island... 


855 


North Carolina 






Maine.... 






Cigars 


Ohio 


1,470 

1.383 

1,235 

853 

804 

3.868 

860 

762 

2,861 

1,144 
978 


New Jersey 




2,240 
1,952 




New York. 




Florida 






Tennessee. 




1,581 




Kentucky. 




Pennsylvania 


1,018 




Indiana.. 








Knitted underwear 


New York .. 




Tennessee 


1,844 

1,617 

1,420 

750 

1,324 

822 

884 

614 






Massachusetts 






Connecticut 


North Carolina 






New York.. 


Michigan.. 




House furnishings and fabri- 






cated textiles. 


Ohio 

Indiana 






Gloves and mittens, cloth 


Georgia.. 



















' Major shifts are those that involve 750 or more wage jobs in any State. 
For a definition of types of shift, see p. 87. 



Industrial Location and National Resources 

there was an absolute outward shift of more than 
20,000 wage jobs from New York, mainly from New 
York City. Midwestern centers in Illinois, Wisconsin, 
and Minnesota also sustained outward shifts. The 
major expansion was in areas of lower wage costs in 
the Southeast, New England, and the Middle Atlantic 
States not far removed from metropolitan New York. 
Still another variation in pattern was provided by 
the manufacture of knitted underwear, a nationally 
declining industry in terms of wage jobs. In this in- 
stance, though the largest outward shift, 3,900 wage 
jobs, was from New York, there were also outward 
shifts from Massachusetts, Connecticut, and New Jer- 
sey, ranging from 400 to 850 wage jobs. In keeping 
with the more usual pattern for these industries, there 
was an absolute inward shift of some 1,600 wage jobs 
into Pennsylvania, as well as expansion in several 
States of the Southeast, such as Tennessee and Noi'th 
Carolina, with lesser shifts into Alabama and Virginia. 
In the Middle "Western States the shifts were mixed 
and small. Some indication of the character of wage 
differentials that existed as late as September 1938 is 
given by the data in table 12. 

Table 12. — Average hourly earnings for skilled workers and all 
workers in the knitted-underwear industry by region, Septem- 
ber 1938 



Region 



New England and New Yort ' 

Pennsylvania 

Middle Western States 

Southern wage area ., 



.\.U workersj 



Skilled 
workers 



0.423 
.379 
.475 
.330 



0.694 
.Sl.'i 
.613 
.445 



Source: Hourly Earnings in Knit-Goods Industries (Other than Hosiers), September 
1938, Bureau of Labor Statistics, November 1939, p. 8. 

' Includes New Jersey. 

In the manufacture of boots and shoes, other than 
rubber, shifts to the Southeast were of somewhat 
lesser importance but still considerable. Of more im- 
portance was the shift within New England from high- 
wage to low-wage areas. Thus, from the shoe centers 
of Massachusetts there was an outward shift of 11,000 
wage jobs. Half of this number could be accounted 
for by an inward shift of 3,200 wage jobs into Maine 
and 2,500 wage jobs into New Hampshire. Much the 
s«me thing on a smaller scale happened in the Middle 
Atlantic States, where an outward shift of 5,100 wage 
jobs from New York was partially offset by an inward 
shift of 2,000 wage jobs to Pennsylvania. There were 
also cross-currents in the Middle Western States with 
inward shifts to Illinois and Ohio of 1,200 and 2.000 
wage jobs respectively, and an outward shift of 1,200 
fi'om Wisconsin. In the Southeast the largest inward 
shift was to Tennessee, some 2.200 wage jobs, while 
there was an outward shift of half this number from 



95 

Kentucky. There were very definite beginnings of the 
industry in Virginia and Georgia." 

The cigar industry was among those with the largest 
relative decline in this period, and the movements were 
largely absolute outward shifts or relative inward 
shifts, i. e., the percent decline in a given State was 
less than that for the entire industry. The only abso- 
lute inward shift, that into South Carolina, included 
nearly 1,600 wage jobs. A relative inward shift of 
somewhat larger proportions (1,952 wage jobs) oc- 
curred in Florida. In both States the presence of a 
labor supply willing to accept the very low wages 
paid for making cigars bj' hand probably accounted 
for the shifts. Some absolute outward shifts occurred 
in the Southeast such as 1,200 from Tennessee and 850 
from Kentuck}'. The largest outward shift, however, 
was from New York, involving almost 1,400 wage jobs. 
Owing to the location of a large proportion of the 
mechanized plants in New Jersey and Pennsylvania 
there were relative inward shifts of 2.200 in the former 
and 1,000 in the latter. 

The last two industries of the series under considera- 
tion — namely, house furnishings and fabricated tex- 
tiles, and cloth gloves and mittens — were relatively 
unimportant. In the former, the largest shift was out 
of New York, nearh' 2,900 wage jobs, while the largest 
inward shift, some 1,300, was into Georgia. ^luch 
smaller inward shifts occurred into Tennessee and 
Kentucky. The outward shifts in the making of cloth 
gloves and mittens were from Ohio and Indiana, while 
small gains were registered in Georgia, New York, 
and Illinois. 

There were seven other industries for which the 
movements appear to be labor-motivated but for which 
shifts to the Southeast were negligible or nonexistent 
(table 13). The most important of these was women's 
clothing, one of the industries in which the percent 
increase in wage jobs between 1929 and 1937 exceeded 
24 percent. As a consequence, the absolute inward 
shifts occurred in the main by virtue of relative out- 
ward shifts rather than absolute outward shifts. In- 
deed, the latter were found in an}' substantial number 
only in Ohio, largely Cincinnati, and Maryland, re- 
spective shifts of 3,200 and 2,000 wage jobs. These are 
to be compared with the relative outward shift ( per- 
cent increase for an industry in a given State less 
than the percent increase for the entire industrj") from 
New York, chiefly New York City, of nearly 17,000 
wage jobs. By comparison, the other relative outward 
movements were minor. The absolute inward shifts 
were to the low-wage areas of New England and to 

** Fnr a discussion of the importance of labor cost^ in these shifts see 
E. M. Hoover, Jr., Loca(ion Throrxi and the Shoe and Leather Induatriea, 
Harvard I'nlverslty Press, Cambridge, 1!)37, p. 171. 



96 



National Resources Planning Board 



Table 13. — Major localional shifts in labor-oriented industries that shifted to the Northeast and Middle States, 1929 to 1937, by State and 

type of shift ' 





Percent 

change in 

wage jobs 

in United 

States, 

192»-37 


Outward shifts 


Inward shifts 


Industry 


State 


Number of wage jobs in — 


State 


Number of wage jobs in- 




Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Relative 
shifts 




+29.5 

+26.6 

+2.3 

+1.2 
-5.7 

+89.8 
+89.8 

+19.8 






16.686 


New Jersey 


11.953 
5,665 
3,831 
2,019 
842 

1.321 

1.269 

1,146 

965 

932 

1,020 

1,349 

1.062 

3,350 

2,683 

1,449 

1,107 

996 








3.179 
1,996 








Maryland 




Connecticut 








1,738 
1,438 








Missouri 




Michigan.. 








889 






Leather goods, handbags, etc.'.. 




2,259 




do 


2,831 

2.211 
2.327 
1.184 
3,797 












Bonkbinding and blankbook 
making. 


Illinois 




do 








Pennsylvania 


























New York 










Ohio 


1,821 


Michigan 






Massachusetts 


1,918 
1,640 
1,300 


Illinois... 




Rubber goods 2 


Rhode Island 






New York 








A 



















» Major shifts are those that involve 750 or more wage jobs in any State. For a definition of types of shift, see p. 87. 
' Not elsewhere classified. 



the Middle Atlantic States not too far removed from 
New York City, thel major style and distributing 
center. 

Very similar, but on a reduced scale, was the experi- 
ence in the manufacture of leather goods and hand- 
bags. In this industry, there was an important 
relative outward shift from New York and smaller 
absolute outward shifts from several Middle States, 
with major absolute shifts into New Jersey, Pennsyl- 
vania, Connecticut, and Massachusetts. Knitted out- 
erwear was characterized by the same movement, 
except that the outward shift from New York was an 
absolute one. In bookbinding and blank-book making, 
there was another major absolute shift from New 
York, where the printing trades generally were highly 
unionized. In this instance, however, the inward 
shifts were to Illinois, Indiana, and New Jersey. 
Shifts in the fabrication of wool carpets and rugs, it 
will be noted, occurred within the established centers 
of the industry.^" 

The more important shifts in the manufacture of 
refrigerators also seem to have been brought about by 
labor-cost differentials. The two shifts of major con- 
sequence were an outward one of 3,800 wage jobs from 
New York, presumably Schenectady, and an inward 
shift of 3,350 into Pennsylvania, mainly Erie, where 
wage costs were somewhat lower. Lastly, there were 
movements in the fabrication of miscellaneous rubber 
goods, which expanded on a Nation-wide basis. The 

'" For a discussion of the role of labor-ccst differentials in these shifts, 
particularly the decline of the industry in Philadelphia, see A. H. Cole 
and H. F. Williamson, The American Carpet Manufacture, A History 
and an Analysis, Harvard Economic Studies, vol. LXX, Harvard Uni- 
versity Press, Cambridge. Mass., 1941, pp. 154-156 and Gladys L. 
Palmer, Union Tactics and Economic Change, University of Pennsyl- 
vania Press, Philadelphia, Pa., 1932, pp. 5-22. 



absolute outward shifts were from older centers in 
Massachusetts, Connecticut, and New York. In Ohio, 
also a center, there was a relative outward shift of 
some 300 wage jobs. The inward shifts, of moderate 
size, were to States that adjoined or were near the 
established centers.^" 

Changing Location of Raw Materials 

Interstate movements in l-i industries can be attrib- 
uted primarily to shifts in the location of raw ma- 
terials, including 6 that have been bound to our forest 
resources (table 14). The most obvious of these was 
the processing of lumber, an industry in which the de- 
cline exceeded 20 percent. As might Tie expected in 
such a situation, wage jobs in absolute inward shifts 
were not very much more numerous than those in rela- 
tive inward shifts, 30 percent and 21 percent, respec- 
tively, of all wage jobs involved in shifts. By far the 
more important outward shifts were from States in the 
Southeast. Secondary outward shifts occurred in the 
Great Lakes area of Wisconsin and Minnesota. 

The absolute gains were even more widely scattered 
regionall}'. The largest, some 9,100 wage jobs, oc- 
curred in Oregon. The Southeast was represented by 
a shift of nearly 2,900 wage jobs into Virginia whil# 
the only other absolute inward shift was into Maine. 
Almost as scattered were the relative inward shifts 
(i. e., where the percent decline of the industi-y in a 
given State was less than for the industi-y on a 
country-wide basis). Wliile the larger shifts of this 
type were in the Far West (Washington and Call- 



=" For a discussion of the importance of labor-cost differentials in this 
branch of the rubber goods industry see John Dean Gaffey, The Pro- 
flit ct i r it ;/ of Laltor in the Rubber Tire Manufacturing Industry, Columbia 
University Press, N. Y., 1940, p. 170. 



Industrial Location and National Resources 



97 



fornia), they were also appreciable in the Southeast 
(Florida and North Carolina). 

In a related industry, planing mill products, there 
was also a rapid decline and roughly equal absolute 
and relative inward shifts. The movements in this in- 
dustry and those in lumber, however, did not appear 
to be highly con-elated; for example, in planing mill 
products there were very few impoi-tant shifts. Thus, 
while shifts of more than 250 wage jobs occurred in 
19 States, they exceeded 1,000 only in 5 States and in 
no State involved as manj' as 2,000 wage jobs. The 
regional scatter of the few significant shifts is 
indicated in table 14. 

In the manufacture of wooden boxes, another na- 
tionally declining industry, shifts were typically small 
and widely scattered. Of the 15 States in which shifts 
occurred, only 2 had movements amounting to more 
than 1,000 wage jobs. The only important absolute 
gains were made in Florida and Georgia, while small 
losses were found in New England (Massachusetts and 
Maine), Middle Atlantic (Pennsylvania and Mary- 
land) and Middle Western States (Ohio, Wisconsin, 
and Missouri). 

Shifts in the processing of pulp, wood, and other 
fiber, were also characteristically small and scattered. 
Only 3 of the interstate shifts in this expanding in- 
dustry involved more than 1,000 wage jobs. Two of 
these were absolute outward, from New Hampshire 
and New York; the third was inward, into Washing- 
ton. In the Southeast the only absolute outward shift 
was from North Carolina, some 900 wage jobs, while 
small inward shifts ranging from 270 to 700 wage jobs 
took place in seven States of the region. 



Shifts in forestry resources affected locationally the 
manufacture of the primary paper products. As in 
the case of other wood products industries, many 
States were represented, but the shifts from a single 
State were moderate or small. These were primarily 
restricted to the Northeast, with the exception of 
Pennsylvania and Maryland, Avhere gains were small. 
The larger inward shifts, however, occurred mainly in 
the Southeast and Far West. In the former region 
the shifts aggregated nearly 3,500 wage jobs (presum- 
ablj' chiefly in the manufacture of kraft paper) but 
they were scattered over eiglit States and the largest 
single shift did not exceed 850 wage jobs. Each of the 
three States in the Far West had an inward shift, 
with the largest one in Oregon involving just over 
800 wage jobs. 

Since paper bags are manufactured from kraft 
paper, it was to be expected that the latter would shift 
along with kraft paper. Accordingly, the single most 
important shift was to Alabama, almost 800 wage jobs, 
with one-third that number going to Georgia. 

The remaining eight industries reflecting geographic 
changes in raw materials are shown in table 15. In 
wholesale meat packing, a nationally expanding indus- 
try, the development of new grazing areas in the North 
and Far West as M-ell as in the South brought a con- 
comitant shift at the expense of the older centers. 
Thus the major absolute outward shifts were from 
Illinois, Kansas, and Nebraska. The largest inward 
shift was in California and amounted to nearly 1,400 
wage jobs, though both the Southeast and Southwest 
were favored almost equally. 

Since the raw materials for the canning and preserv- 
ing of fruits and vegetables are perishable, the can- 



Table 14. — Major localional shifts in specified industries based on forest resources, 1929-37, by State and type of shift ' 





Percent 
change in 
wage jobs 
in United 
States, 
1929-37 


Outward Shifts 


Inward Shifts 


Industry 


State 


Number of wage jobs in- 


State 


Numberof wage jobs in- 




Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Relative 
.shifts 




-22.7 

-25.9 

-15.0 
+9.2 

-1-7.2 

+48.6 




6,722 

3,098 

2,769 

2,638 

1,281 

1,137 

973 

873 

1,900 

1,322 

867 

818 

1,307 

1,114 

927 

832 

2,506 

1,453 

870 

792 

792 




Oregon 


9.115 










Washington 


3,340 










2.888 










Florida 


1.920 








Xorlh Carolina 


i,"ii8" 


1,138 
















California . 


1,109 








Washington . 


1,501 
1,219 
1,060 
1.892 
1.118 
I.7CM 

991 
836 
813 

795 




Planing mill products. 


Npw York 




, 
















Virginia .. 
























Pulp, wood and other fibre 


Wasiiington 






















Maine 






Paper 






















Oregon -.-- - .... 










Alabama .............. 























> Major shifts arc those that involve 750 or more wage jobs in any State. For a definition of types of shift, sec p. 87. 
- 414786 — 43 8 



98 



National Resources Planning Board 



Table 15.- — Major locational shifts in specified raw-material-orienied industries, 1929-1937, by State and type of shift ' 





Percent 
change in 
waee jobs 
in United 
States, 
1929-37 


Outward shifts 


Inward shifts 


Industry 


State 


Number of wage jobs in— 


State 


Num ber of wage jobs in— 




Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Relative 
shifts 




+4.1 
+38.6 

+33.9 

+33.1 
+23.7 

+24.0 

+11.7 

+63.2 


Illinois 


4,712 

1,391 

1,273 

781 

778 




California 

Minnesota 


1,397 
1,317 
1,117 
1,077 
1,024 
2,467 
1,967 
1,700 
1,205 
1,068 
1,369 

2,280 
763 
2,426 
1,365 
1,409 
1,274 
9,436 
1,535 
1,363 






Kansas 


















New York 




Tpnnp.s.'^ep 














Canning and preserving of 


California .... 


5,011 
1,291 
1,161 
1,156 
765 


do 

Florida 














Wisconsin . . 














Virginia.-- 

Illinois 

Mississippi 

Kentucky 
















1,042 

989 
2,235 

3,328 
974 

1,928 
802 




other seafood. 


Iowa.. 

New Yorlc 






Cigarettes ... , . 








do 




Virginia 

West Virginia 




Chemicals- 






Massachusetts 




Tennessee 

Pennsylvania ,. 






















2,635 


California 

Connecticut 






Michigan .. .. . 


2,180 

1, 373 

1,075 

980 






New Jersey - . ,-- 








Ohio 

























> Major shifts are those that involve 750 or more wage jobs in any State. For a definition of types of shift, see p. 87. 
- Not elsewhere classified. 



neries must be located in proximity to the producing 
areas. The development of new producing areas, 
therefore, would call forth the establishment of new 
canneries in nearby localities. In recent years, can- 
ning of food products has increased considerably in the 
South, particularly in Virginia, Florida, and Texas, 
and in the Midwest, specifically in Indiana and Illinois. 

The more moderate shifts which occurred in the can- 
ning and curing of fish and other seafood may be sim- 
ilarly explained. In this instance, there were shifts 
out of Maine, Massachusetts, and Washington, and 
shifts into Mississipi, Louisiana, and California. 

Small shifts in the making of buttons, a relatively 
unimportant industry, can be explained by a growing 
use of new raw materials. The largest shift (involv- 
ing nearly 1,000 wage jobs) was outward from Iowa, 
which lias been tlie center for buttons made from 
fresh-water pearl or shell. Census data show that the 
quantity of such buttons produced declined from 22 to 
17 million gross between 1929 and 1937 and that the 
drop was more than compensated for by the buttons 
made from synthetic materials, a section of the in- 
dustry centered largely in the East. The inward shifts 
occurred in Massachusetts, Connecticut, New York, 
Maryland, and Virginia. 

The cigarette industry has also continued to shift 
toward its raw materials, but to Kentucky and Vir- 
ginia, rather than to the established locations in North 
Carolina. The only absolute outward shift (one of 
2,200 wage jobs) was from New York. 

If fuel or power be included in raw materials, shifts 
in chemicals may also be considered as contingent on 
the availability of raw materials, although the ex- 



tremely hetei'ogeneous character of the products of tliis 
industiy classification makes aiw generalization most 
hazardous. It would seem that the availability of 
cheap natural gas in West Virginia and cheap elec- 
tricity in Tennessee would explain why the largest 
inward shifts of this rapidly expanding industry oc- 
curred in those States. The largest sufferer was again 
New York. 

Very probably it was cheap electricity in Tennessee 
and power from cheap fuel in western Pennsylvania 
that resulted in the expansion of the aluminum indus- 
try in those two States. Once more the only outward 
shift of consequence was from New York. 

Climate may also be considered in the category of 
raw materials. At least, it was in part the relative 
uniformity and mildness of the California climate, 
making possible year-around testing and experimenta- 
tion, that led to the present development of the air- 
craft and parts industry in that State. The inward 
shift to California amounted to more tlian 9,400 wage 
jobs. The factor of climate, however, would not ex- 
Ijlain the smaller movements to Connecticut and Mary- 
land. It is rather striking that most of the absolute 
outward shifts took place in the Middle AVestern States, 
with the principal shift (nearly 2,200 wage jobs) from 
Michigan. A negative factor there appears to be a 
desire to avoid the high-wage areas of the automobile 
industry, because labor in the aircraft industry has had 
a much lower productivity. In this instance the out- 
ward shift from New York was only a relative one. 

Market Changes 

For another group of 27 industries, changes in the 
character of markets or in their location can be dis- 



Industnul Location and National Resources 



99 



Table 16. — Major loroliotwJ shifts irt vwrlet-orienied i7idvslries in which shifts resvlted from changes in markel demand, 1939 to 1937, by 

State and type of shift i 





Percent 
change in 
wage jobs 
in United 

States. 

1929-37 


Outward shifts 


Inward shifts 


Industry 


State 


Number ot wage jobs in- 


State 


Number of wage jobs in- 


• 


Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Relative 
shifts 


Steel works and rolling mills.... 


+21.5 

+13.0 

-30.4 

-ti. 

-1.1 

+60.9 
+55.3 


Ohio 




12,754 
11,051 


Michigan 


15.284 
7.960 
4.471 
4.420 

2.175 
2,053 
1.421 
1.093 
893 
807 
1,176 

797 
775 

809 
















2,521 
1.187 


Illinois.. 






Minnesota ■ 




Maryland 






New York 


1,174 

1,042 

983 

873 
















California -_ 
















Colorado -- ... 


869 

3,618 

1,074 

944 

872 

1,275 
1.122 
1.089 
2,214 
949 
1,755 
1,088 
1.283 






New York 


















Delaware - 




Texas 


























Maine . . 




Clay products, other than pot- 










Michigan 












Pottery 


Ohio - - 












West Virginia 




Beverages, nonalcoholic 

.\sbestos products 

Wallboard and gypsum prod- 
ucts. 


New York - 





























> Major shifts are those that involve 750 or more wage jobs in any State. For a definition of types of shift, see p. 87. 



tinguished as the most important factor affecting 
shifts. In 7 of these industries, changes in the charac- 
ter of tlie markets woukl seem to have been the con- 
trolling factor (table 16). 

There can be but little question that such was the 
case in steel works and rolling mills. In this S-j'ear 
period, rails and heavy steel used in construction de- 
clmed in importance, while the production of sheets 
and strips for durable consumers goods, more notably 
automobiles, gained in importance. Thus, of the total 
production of finished rolled steel products in 1029, 
rails accounted for 6.G percent, structural shapes for 
11.8, and sheets and strips, 14.2. The respective per- 
centages in 1937 were 4.1, 7.5, and 30.-' 

This alteration in demand favored the mills in some 
of the ^Middle Western States of Michigan, Indiana, 
and Illinois, since they were better situated to supply 
the consuming centers with those products needed in 
greater volume. An inward shift equal to that in 
Illinois also occurred in Maryland, but this was due 
mainly to the advantages of importing high-grade ore 
from Chile as well as to the advantage of distributing 
its products along the eastern seaboard by an all-water 
route. The outward shifts from the older producing 
centers of Pittsburgh and Youngstown. however, were 
not absolute but relative, as were the much smaller in- 
stances in New York, New Jersey, and West Virginia. 

The implementation in 1937 of the United States 
Merchant Marine Act pas.sed in the previous year 
brought much new business to the east coast sliipyards, 
since the act provided for subsidizing the construction 

■' Btccl, October 17. 1938. p. 4. 



of ships to be used in foreign trade. The initiation of 
the naval building program would also have the same 
effect. Thus, there were inward sliifts to New Jersey, 
Maryland, and Pennsylvania, and, to a lesser extent, to 
Massachusetts, Maine, and Connecticut. There was 
also an inward shift to the Gulf ports of Texas. Con- 
current losses were felt in the Great Lakes States. The 
largest outward shift occurred from New York, chiefly 
from the New York City ai'ea. 

Both the clay-products and pottery industries ex- 
perienced a fall in demand for their products owing to 
the lag in the recovery of building construction. In 
the former, the only shifts of consequence were three 
absolute outward ones from the large centers of New 
Jerse}', Illinois, and Indiana and one relative inward 
shift to Pennsylvania, important production center of 
high quality brick. The .single important shift in the 
pottery industiy was an absolute outward one from 
Ohio, where the industry's output had been weighteil 
heavily with plumbing fixtures. 

The manufacture of nonalcoholic beverages also suf- 
fered a decline in demand, the causal factor in this 
instance being the repeal of prohibition.-- After the 
repeal, nonalcoholic beverages lost favor in the North 
but retained their hold in the South, a change reflected 
in outward shifts from Massachusetts, New Jersey, 
Pennsylvania, Illinois, and Wisconsin, accompanied by 
improvements in Virginia. North Carolina, Florida, 
and Texas, where the syrups were prepared and shipped 

^ Wliilc nonalcoholic beverages has been a shifting Industry accord- 
ing tn our crit<'ria. n(»vertheless it posse8,sed some of the characteristics 
ot' a nnnshifting iiuiustr.v producing for a liJKlil.v localized mnrliot. The 
coetlii'ient of scatter for this industry was 17. 



100 



Table 



National Resources Planning Board 



17. — Major locational shifts in market-oriented industries in which shifts resulted from changes in the location of ?narkets andlor 
changes m market demands, 1929 to 1937, by State and type of shift ' 





Percent 

change, in 

wage jobs 

in United 

States, 

1929-37 


Outward shifts 


Inward shifts 


Industry 


State 


Number of wage jobs in- 


State 


Number of wage jobs in- 




Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Relative 
shifts 


Dyeing and finishing of textiles. 


-2.2 
-14.0 

+28.7 

+ 1.3 
+52.7 

+ 17.1 
+ 17.0 
-24.0 

-5.2 

-0.3 

+9.4 

+49.5 


New Jersey 


8,896 
2,679 
1.983 
1,794 
766 

11,894 

6,414 

4,498 

3,132 

917 

904 

902 

842 

10, 195 

8,809 

6,021 

4,307 

3,890 

3,815 

2,591 

2,027 

1,995 

1,022 




North Carolina 


6,154 

5,229 

1,424 

978 

788 

762 

27, 747 

2,548 

8S1 

40, 294 
3,710 
1,176 

6,740 
1,835 

4,352 

1,350 

920 

2,481 
1,679 
1,061 
1,051 

3,568 

1,184 

788 






South Carolina 








Virginia 










New Hampshire 






Illinois 




Alabama ... 






Ohio _ 




Connecticut ... 






Michigan 






Indiana 




California 






New York .... .... 




Maryland 










Michigan ... 












North Carolina 






Nebraska-,.-... . .. 






Massachusetts 




Motor vehicles, bodies and 


New York.. 






Ohio 




Indiana 






Pennsylvania 




Maryland.. 






Tennessee 


982 


Michigan 






Wisconsin 






Massachusetts 






Kentucky 






Missouri 






New Jersey 






Arkansas 






Illinois 




Hardware ^.. 


Connecticut .. 


4,04-1 
1,295 
1,071 
990 
2,419 






New York 




Illinois 






Ohio 




Ohio 






Pennsylvania . 














2.384 
1,617 

906 


Michigan . 






Illinois 




Pennsylvania 






Wisconsin.. 


1,486 


Michigan 






Maryland 




Glass 


Pennsylvania 


3,960 








1,118 


Ohio 






New Jersey 


935 

3,314 

1,428 

990 


New York... 




Mirrors and other glass prod- 


Ohio 




ucts made from purchased 
glass. 
Rubber tires and inner tubes.. 


Ohio 




Michigan 








Alabama. ... 










Pernsylvania . 






(3) 


California... 


992 


Foundry and machine shop 


Michigan. 


20,093 
3,563 
2,706 
1,197 
2,622 
784 
1,803 




products. 


Rhode Island 


1,566 

902 

3,860 

1,036 




Texas.. 




Machine tools _ 


Ohio 






Vermont.. 




Illinois 




Wire drawn from purchased 










rods. 


Illinois- 




New Jersey 




Wirework ^ _. 


Pennsylvania .. 


1,186 










1. 141 













' Major shifts are those involving 750 or more wage jobs in any State. For definition of types of shift, see p. 87. 

2 Not elsewhere classified. 

3 Changes in classification were such as to make unwarranted the computation of outward shifts. 



to bottling works in other States. Only in one south- 
ern State, Keiitiicky, was there any development in 
the alcoholic liquor industry. 

The shifts in the other two industries, asbestos prod- 
ucts and wallboard and gypsum products, were quite 
small, and resulted from altered market demands. In 
the former industry, according to census data, there 
was a decline in the production of asbestos textiles, off- 
set by an increa.se in the production of asbestos build- 
ing materials. Since each type of product was pro- 
duced in different establishments, there aro.se locational 
shifts. A somewhat similar situation occurred in wall- 
board and gypsum products, in that there had been a 
falling off in the demand for plaster made from gyp- 
sum or other products, but an increased demand for 
wallboard, whether made from gypsum or other fibers. 

Shifts in the dyeing and finishing of textiles 
(table 17) were clearly due to market migration. 



This industry is supplementary to the weaving and 
knitting of textiles, and when an important fraction 
of these moved to the Southeast, nearby establishments 
were set up for dyeing and finishing the less stylized 
products. The measurement of the shifts in this in- 
stance was complicated by changes in industrial classi- 
fication. That is, in 1937 but not in 1929, dyeing and 
finishing departments of cotton and silk and rayon 
mills were included in dyeing and finishing proper. 
This would tend to exaggerate the magnitude of the 
absolute inward shifts into the Carolinas and Virginia. 
Still another change in classification (inclusion in 
hosiery in 1937 but not in 1929 of establishments that 
dyed and finished hosiery) tended to accentuate the 
volume of absolute outward shifts from New Jersey, 
Pennsylvania, and Massachusetts. 

For a group of 10 market-oriented industries era- 
bracintr automobiles and linked industries there was a 



Industrial Location and National Resources 



101 



combination of changes in both character and location 
or markets (table 17). However, the shifts in the 
manufacture of automobiles themselves, which do not 
come within this category, must be described first. The 
Cenms of Manufactures has reported the manufacture 
of automobiles under two different industry classifica- 
tions. One is "motor vehicles" defined as "all manu- 
facturing establishments whose principal products are 
motor-propelled vehicles having four wheels or more, 
for use on highways." This reduces itself to establish- 
ments operating final assembly lines. The industry so 
defined declined in employment between 1929 and 1937 
due mainly to increased productivity resulting from 
technological improvements. The latter in turn made 
further concentration of production economical."^ 
Thus, absolute outward shifts occurred in many sections 
of the country, from the Southeast and Southwest re- 
gions and from certain of the Middle Western States. 
The evidence of increased geographic concentration of 
the industry is provided by the gain of 27,700 wage 
jobs in Michigan. The only other important inward 
shift, more than 2,500 wage jobs, was an attempt to 
develop a manufacturing center for the Far West, in 
California. 

The industries linked to automobile manufacture 
would follow much the same pattern, especially motor 
vehicles, bodies, and parts. This branch of the in- 
dustry expanded nationally owing to the increased im- 
portance of styling and gadgets, making it desirable 
to keep in close touch geographically with the auto- 
mobile manufacturer. On the negative side was the 
consideration that the use of wood in bodies and parts 
gave way to metal and plastics. The manufacture of 
bodies, particularly truck bodies and parts, became less 
scattered, since the substitute materials are much less 
ubiquitous than wood. The concentration was even 
more striking than in the manufacture of motor ve- 
hicles. The absolute inward shift to Michigan in- 
volved as many as 40,000 wage jobs. Only two other 
inward shifts exceeded 1,000 wage jobs, those into 
Indiana and Marjdand. On the other hand, the ab- 
solute outward shifts of appreciable volume were 
numerous and widespread. 

The fabrication of hardware, not elsewhere classi- 
fied, was another industry in which the shifts were 
affected by the automobile industry ; indicative thereof 
was the large inward shift into Michigan. The in- 
dustry was hurt at the same time by the decline in 
building construction: employment suffered most in 
Connecticut, the chief hardware manufacturing center. 

Many of the products classified as stamped ware and 
enameled ware are also linked to automobiles. The 



inward shifts into Michigan, however, were exceeded 
by those into Ohio. The more appreciable outward 
shifts were both absolute and relative, the former from 
New Jersey and the latter from New York. 

Glass making seems to have followed the automobile 
industry, at least into Michigan. This was the largest 
inward shift and involved nearly 2,500 wage jobs. 
The next largest sliift was into Ohio, while the only 
other shift of importance was into New York. These 
last two shifts probably were not related to develop- 
ments in the automobile industry. Pennsylvania 
showed the only substantial absolute outward shift, 
involving almost 4,000 wage jobs. A relative outward 
shift of some size from Indiana might also be noted. 
Closely related is "mirrors and other glass products 
made from purchased glass." Since the most im- 
portant product of the industry and its fastest grow- 
ing component has been laminated (safety) glass, the 
shifts out of New Jersey and into Ohio were probably 
connected with developments in the automobile 
industry. 

Most of the shifting in the fabrication of rubber 
tires and tubes was from Ohio, presumably Akron, and 
into Michigan, doubtless Detroit. This was done 
largely to supply new cars more economically with 
their original set of tires. The only other inward shift 
of consequence wag into Alabama. This resulted from 
the insistence of Sears, Eoebuck and Co. that the 
Goodyear Tire and Rubber Co., under contract to sup- 
ply it with tires on a cost-plus basis at the factory 
door, establish a plant in the South for the regional 
market.-'' Subsequent to 1937 a continuance of the 
shift out of Akron was produced by differentials in 
labor costs.^^ 

Foundry and machine shop products may be classed 
with this group of industries, at least with respect to 
the absolute inward shifts. The heterogeneity of 
products that composes this classification would in 
itself make interjiretation very difficult: furthermore, 
changes in classification occurred between 1929 and 
1937 for which corrections could not be made. For 
example, industrial ice-making machinerj', air com- 
pressors and dry-vacuum pumps, and duplicating, man- 
ifolding, addressing, and mail-writing machines were 
included in foundry and machine shop products in 
1929 but were transferred to other industries in 1937. 
Accordingly, many of the outward shifts maj' reflect 
merelj' the changes in classification. The same con- 
sideration, however, does not affect the inward sliifts; 
these are real, although the exact magnitude of the 
inward shifts is understated. Consequently, it is sig- 
nificant that there was a shift of some 20,000 wage 



" Tile unionization of the industry after 1937 probably has reversed 
this trend. 



=* John Dean GafTey, op. cit., p. 158 and p. 162. 
■'Ibid., pp. 171-175. 



102 National Resources Planning Board 

Table 18. — Major locational shifts in miscellaneous market-oriented industries, 1929 to 19S7, by State and type of shift ' 





Percent 

change in 

wage jobs 

in United 

States, 

1929-37 


Outward shifts 


Inward shifts 


Industry 


State 


Number of wage jobsin— 


State 


Number of wage jobs in — 




Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Relative 
shifts 


Heating and cooking apparatus, 
except electric. 


+3.5 

+5.2 
+1.1 

-15.4 
—29.4 

+194.9 


New York 


1,442 
1,148 
1,098 
1,033 
9g9 
864 

1,209 

1,037 

865 

1,015 

1,596 

904 

834 






1,989 

1,689 

1,042 

830 

1,150 
834 

1,245 
899 
767 

3,179 

1,584 

1,044 

948 
785 




Missouri 




California 














Tndifinn 




Miinip.<!nt(^ 






Ohio 










Ohio . . . 












PeimsylTania 








roads not made in railroad 


Iowa 




California 














Conjfectionery 


New York - . 




Illinois - 




Structural and ornamental 


Ohio 




California 




metal work. 


New Jersey _ . . 










New York 






Pulp goods and synthetic resins. 




1.125 
1,016 


















Minhigftn 











1 Major shifts are those that involve 750 or more wage jobs in any State. 
' Not elsewhere classified. 



For a definition of types of shift, see p. 87. 



jobs (presumably machine shops and foundries proper) 
into Michigan, which must be attributed largely to the 
expansion in the same State of motor vehicles and 
motor vehicle bodies and parts. The only other in- 
ward shift of any consequence was into Texas, nearly 
3,600 wage jobs, which was also a reflection of growth 
of manufactures in that State. 

The machine-tool industry also services other 
branches of manufacturing. Accoxdingly, it was to 
be expected that the industry would shift from the 
Northeast to the Middle "Western States along with 
manufactures in general. 

The continued expansion of the automobile in- 
dustry in Michigan during this period, as well as 
the presence of electrical machinery industry, prob- 
bably explains the absolute inward shifts into Michi- 
gan in the manufacture of wire drawn from pur- 
chased rods and miscellaneous wirework products, both 
made outside of rolling mills. In each case, the gains 
in Michigan were the only ones of consequence. In 
the case of wiie drawn from purchased rods, there 
were losses in Indiana and Illinois. In the fabrica- 
tion of miscellaneous wirework the relative outward 
shifts were as important as the absolute. The former 
occurred in Pennsylvania and the latter in Massa- 
chusetts. 

Sufficient data are not at hand to determine the 
specific reasons for the shifts in the remaining 8 in- 
dustries that have been considered as oriented toward 
major marketing areas (table 18). In each of these 
industries, the individual shifts have been relatively 
small; however, they occurred in a relatively large 
number of States. The assumption of market orienta- 
tion in the absence of evidence to the contrary is based 
on the fact that coefficients of scatter are high, ranging 
from 6 to 10. 



Of special interest in this group of industries are 
the areas of expansion in the manufacture of plastic 
products, classified as pulp goods and synthetic 
resins.-** Though still a small industry in 1937, it un- 
derwent the most rapid expansion of all 139 industries 
and still possesses large potentialities for development 
in the future. Its development was largely restricted 
to Pennsylvania, Massachusetts, and Michigan. 

Miscellaneous Considerations 

At least in general terms, 60 of the 72 industries 
classified as shifting have been accounted for. For the 
remainder (table 19) it is a moot point whether the 
shifts recorded were in response to changes in costs 
that adhere to given locations. In 5 industries, two 
of which declined on a national basis (textile machin- 
ery and parts and rubber boots and shoes) the shifts 
seemed to have resulted from an effort to consolidate 
production. Thus, in the manufacture of textile ma- 
chinery and parts there was further concentration in 
Massachusetts and Maine, the losers being Rhode 
Island, Connecticut, New Jersey, and Pennsylvania. 
The manufacture of rubber boots and shoes tended to 
be concentrated in Connecticut, at the expense of 
Massachusetts, Rhode Island, and Pennsylvania. 

In the making of cutlery and edge tools there was 
an apparent shift from Massachusetts into Connecticut, 
always an important center of the industry. 

Much the same can be noted with respect to shifts in 
the worsted goods industry. In large established cen- 
ters in Massachusetts and northern New Jersey the 
industry expanded, while the surrounding States of 
New Hampshire, Vermont, Connecticut, and Pennsyl- 
vania suffered absolute outward shifts. The relatively 



^ Since this industry was constituted a separate one beginning with 
1931, the shifts are measured from that date. 



Industrial Location and National Resources 

Table 19. — Major locational shifts in specified industries, 19S9 to 1937, by State and Type of shift ' 



103 





Percent 
change in 
wage jobs 
in United 

States. 

1929-37 


Outward shifts 


Inward shifts 


Industry 


State 


Niunber of wage jobs in- 


State 


Number of wage jobs in- 




Absolute 
shifts 


Relative 
shifts 


Absolute 
shifts 


Relative 
shifts 




-fi.2 
-28.5 

+12.3 
+2.1 

+28.6 

+9.2 

+4.8 

-1(1. 1 




1,392 

2,170 
1.948 
1,115 
1,521 
2,445 
2,002 
1.370 

960 
2.115 
1,435 
1,2«6 
1.253 
1,432 
1,358 
1,183 
3,904 
1,347 
1,149 
7.422 
6,355 
6,252 
1,982 
1,061 

762 




Maine - 


1.427 

993 

3,931 

1,758 

3,947 

1,141 

968 

6.654 
1,764 

2,926 

4.936 
1,782 

4,646 






do 








Boots and shoes, rubber - 










. do 










Cutlery and edge tools 












Massachusetts --. 










New Jersey - , . . 
























Agricultural implements. 










Iowa -_ - 










Illinois --- 












Pumps and pumping equip- 








Ohio 








• 








Xonferrous alloys and products K 












niinois 














Electrical machinery and radios. 














3.565 






Massachusetts 


3,158 
3,130 
2.71-1 
2,074 
1,655 
1,372 
1.097 


















Connecticut - - 










Wisconsin 








Maryland _ 























• Major shifts are those that involve 750 or more wage jobs in any State. For a definition of types of shift, see p. 87, 
' Not elsewhere classified. 



small inward shift to North Carolina, however, very 
probably resulted from labor-cost differentials in favor 
of the State. 

In the production of agricultural equipment, includ- 
ing tractors, there was evidence of concentration in the 
western fringe of the Middle Western States, with an 
increase of almost 6,700 wage jobs into Wisconsin and 
about 1,800 into Iowa. The outward shifts occurred 
not only from such widely scattered areas as New 
York, California, Georgia, and Kentucky, but also 
from several of the Middle States. 

The explanation of shifts in the seven remaining 
industries, three of which are presented in table 19, is 
beset with the difficulties of changes in industrial classi- 
fication. In the manufacture of pumps and pumping 
equipment, for example, changes in classification were 
such that the inward shifts might be either nominal or 
real, while only the size of the outward shifts can be 
challenged, not the fact.-' In two other industries 
("cash registers, adding and calculating machines and 
other business machines except typewriters" and "in- 
struments and apparatus, professional, scientific, com- 
mercial, and industrial") however, shifts in either 
direction might be accounted for by changes in classi- 
fication since subindustries have been added and 
subtracted. 

The classification difficulty is much less explicit in 
the case of engines and turbines. This classification 



in both years excluded "engines made for installation 
in ships and boats, motor vehicles, or tractors built by 
the same establishments." However, with the further 
integration of production in motor vehicle establish- 
ments, more of the production of engines would be 
classified under motor vehicles than under engines and 
turbines. The number of engines for use in motor ve- 
hicles, for example, classified under engines and tur- 
bines declined by more than 60 percent between 1929 
and 1937 while the number of motor vehicles produced 
declined by only 11 percent. It is undoubtedly for 
this reason that an outward shift (of 4.200 wage jobs) 
was recorded for Michigan. It is not known whether 
a similar situation would explain the migration (2,400) 
from Illinois. The inward shifts into Connecticut 
(1,500) New York (1,100) and New Jersey (1,600) 
probably represent in large part the production of 
engines for aircraft.-* 

In the last two of these seven industries ("nonferrous 
alloys and products, not elsewhere classified," and 
"electrical machinery, radios, and phonographs") the 
difficulty stems from the fact that each of the two 
industries embraces a heterogeneous array of products. 
Obviously, the entire array of products is not manu- 



^ The change in classification was ocra.sioned by the Inclusion in this 
Indu.stry in 1937. but not in 1929, of psfabllsUments manufacturing air 
compressors and dry-vacuum pumps as primary products. 



^A somewhat similar classification difficulty also complicates the 
interpretation of the shifts In the industry "wrought pipe, not made In 
steel rolling mills." The shifts were relatively small involving 7 States 
with only two shifts over 1,000 wage Jobs and with none over 1,100. 
Many of these may have resulted from changes in classification. 1. c.. a 
department in a rolling mill In 1 year may have been reorganized as an 
establishment in the other year, or vice versa. 



104 



National Resources Planning Board 



factured in any State in which any one member is 
pi'oduced. Accordingly shifts very probably reflect 
variations in demand for certain of the component 
products entering into the total. 

Summary 

For purposes of summary, the 12 industries enumer- 
ated last may be excluded, since the reasons for the 
shifts are regarded as indeterminate. This leaves 59 
industries, providing 514 million wage jobs in 1929, in 
which the locational shifts have been broadly accoimted 
for. The most common reason found was market con- 
siderations; these accounted for M percent of the in- 
dustries and a nearly equal percent of the wage jobs. 
For the most part these shifts have involved a re- 
shifting of industry in the Northeast and Middle 
Western States, i. e., within the manufacturing belt, 
with the balance probably in favor of the Middle 
Western States. 



Labor-cost differentials were recorded as the pre- 
dominant reason for about one-third of the industries 
and 38 percent of the wage jobs. "Wliile much of the 
develoi^ment of manufactures in the Southeast can be 
attributed to this factor, it was also a source of gain to 
the former textile centers of New England as well as 
to the smaller cities and towns in Pennsylvania, New 
Jersey, and Maryland. 

As one would expect in an industrially mature econ- 
omy, the factor of raw materials accounted for the 
smallest share of the locational shifts, about one-quarter 
of the industries and one-fifth of the wage jobs. It 
was pointed out that regional exhaustion of econom- 
ically workable forest resources explained most of these 
shifts. The advantages of these shifts, in the main, 
have accrued to the hinterland of the major manufac- 
turing belt. If there should be in the future a striking 
increase in the use of synthetic materials, further shifts 
of industry to the major manufacturing belt may well 
result. 



CHAPTER 5 



MEASURES OF INDUSTRIAL DISTRIBUTION 

By P. S. Florence, \\. G. Fritz, and R. C. Gilles* 



Introduction 

Some geographic sections are dominated by manu- 
facturing; in others manufacturing activitj' is sub- 
ordinated to other economic pursuits. As a whole, 
manufacturing sliows a particular type of distribution 
in metropolitan areas, scattered smaller urban areas, 
and other comnumities. For any single manufacturing 
industry the geographic pattern may deviate widely 
among regions or among sizes of communities from 
that of manufacturing as a whole. Within a region 
or a locality the importance of the several branches of 
manufacturing varies widely. This chapter will de- 
scribe and illustrate procedures for measuring the 
locational characteristics of different industries: 

1. Distribution in cities of various sizes and types, 
in "industrial counties," or in rural areas; 

2. Difference of State distribution of particular indus- 
tries from manufacturing as a whole ; 

3. Geographic association with other industries; 

4. Changes in the location of industries among 
States, including tlie extent to which the industrial 
structure of particular States deviates from the na- 
tional pattern. 

The distribution of industry might be measured 
according to capital investment, if reliable figures were 
generally available; or it could be estimated according 
to value of product or value added by manufacture. 
None of these yardsticks is ideal, nor is the one used 
below, the number of wage earnei-s or "employed work- 
ers" ' attached to each industry or occupation. The 
number of wage earners in any industry rises and falls 
from j'ear to year with business conditions, and the 
labor force varies in efficiency, as well as in wage rates 
and living standards, from factory to factory and from 



♦Respectively, Consultant, National Rpsources Planninp; Boarcl (Pro- 
fessor, Universit.T of Birmingham, Enaland) ; Principal Economist, 
National Resources Planning Board ; Senior Economist, National 
Resources Planning Board. 

' "Wage earners" are shown for each industry by the 1939 Census of 
Manufactures ; "emplo.ved worlsers" is a term nsed b.v the Census of 
Pofiulation. the latest figures being (or 1940. The latter census con- 
cerned itself with broad industry groups and included those considering 
themselves as belonging to the industr.v group and nctuilly employed : 
It did not catalog a sufficient variety for present purposes. It did, how- 
ever, include fiijures for every State where the workers associated with 
an occupation resided. The Census of ilanufacturrs employs nearly 
twenty times as many categories as the Census of Population ; but its 
"nondisclosure" rule requires that there be at least three estalilish- 
ments in any industry in any area before the figures may be shown. 
Further restrictions apply In certain ca.scs. This chapter follows 
mainly the Census of Manufactures. 



territory to territory. Because of differences in labor 
efficiency, managerial ability, and in the use of the 
capital supplementing the efforts of employees, it is 
apparent that 10,000 workers in one industry or area 
may not be equivalent in productivity to 10,000 workers 
somewhere else. However, the use of wage earners as 
a unit avoids the differences in price levels that distort 
dollar values, as well as the differences in accounting 
that affect book investment in plant and equipment. 
In tabulating such diverse means of livelihood as wood 
preserving and jewelry manufacture, for example, the 
number of wage earners in a year of as full employ- 
ment as 1939 is probably the best single common 
denominator. 

Distribution by Types of Urban Centers 

Part of the controversy over optimimi industrial 
location revolves about the distribution of industry 
among types of urban areas. For consideration of this 
problem, available data permit effective use of seven 
types of areas.- The 33 industrial areas defined by the 
C'ensus of Manufactures are classified into: (1) Prin- 
cipal cities, (2) satellite cities, (3) industrial periph- 
eries. These 33 areas contained 54.7 percent of the 
manufacturing wage earners in 1939, although they 
cover only 97 of the 3,072 counties. The portion of 
the United States not included in the classification 
above is divided into: (1) cities of 100,000 or more in- 
habitants, (2) peripheries of those cities, (3) important 
industrial counties, and (4) all remaining areas. 

The proportion of wage jobs among these 7 types 
of areas in 1929. for manufactures as a whole and for 
50 important industries, is shown in table 1. The dis- 
tribution is very different for the several industries 
and may mark for industries an inherent economic 
advantage in communities of a given type. The 
relative degree to which a manufacturing industry 
is represented among the various types of areas is 
shown in the table by an "urbanization quotient"', 
which is the ratio of the proportion of workers in the 
area to the proportion found there for manufacturing 
industry generally. A quotient of one for any area 
means that there is no difference between the propor- 
tion of employees in the given industry in that area 
and the proportion there engaged in all manufactur- 

= Classification of Daniel Creamer in Carter Goodrich and others. Mipra- 
titin anil Kronomic Ottportiinitf/, Pliiladelphia. University of Pennsyl- 
vania Press, 1936, p. 320 (f. 

105 



106 



National Resources Planning Board 



Table \.— Percentage distribution of wage jobs and urbanization 
quotients ' for designated types of areas in 50 industries^ 1929 ^ 

[First line for each industry, percentage of United States total; second line, ratio of 
industry percentage to percentage for all manufactures] 



Table 1. — Percentage distribution of wage joba and urbanization 
quotients ^ for designated types of areas in 50 industries^ 1929 ^ — 
Continued 

[ First line for each industry, percentage of United States total; second line, ratio of 
industry percentage to percentage for all manufactures] 



Industry 



Percentage distribution 
ail manufactures 

Canning and preserving. . 

Quotient 

Cotton goods 

Quotient -. 

Dyeing and finishing 

Quotient 

Knit goods 

Quotient 

Skirts.... 

Quotient — 

Silk and rayon 

Quotient... 

Woolen goods 

Quotient 

Worsted goods ..- 

Quotient 

Men's clothing (regular 
shop) 

Quotient 

Men's clothing (contract 
shop) 

Quotient 

Women's clothing (regu- 
ular shop 

Quotient.-. 

Women's clothing (con- 
tract shop) 

Quotient... 

Boots and shoes 

Quotient 

Pottery 

Quotient. 

Furniture - - - 

Quotient... 

Tin cans and other tin- 
ware^.. 

Quotient --- 

Glass 

Quotient 

Electrical machinery 

Quotient 

Steel works and rolling 
mill products . _ _ 

Quotient 

Steam fittings and beat- 
ing apparatus 

Quotient-- 

Stoves and ranges 

Quotient 

Rubber goods, tires, and 
tubes 

Quotient _ 

Foundry and machine 
shop products^ 

Quotient 

Engines, turbines, and 
tractors 

Quotient 

Motor vehicles, bodies, 
and parts 

Quotient 

Motor vehicles, not in- 
cluding motorcycles 

Quotient 

Machine tools. 

Quotient 

Perfumes and cosmetics- 
Quotient 

Paper boxes 3. . - 

Quotient..- _. 

Confectionery., 

Quotient- 

Paints and varnishes. ., 

Quotient 

Fertilizer ._ 

Quotient 

Leather— Tanned, cur- 
ried, and finished 

Quotient ._. 

Stamped and enameled 
ware 

Quotient-.. 

Nonferrous metals, al- 
loys, and products 

Quotient 

Gas and electric fixtures . 

Quotient .. 



A 


B 


C 


D 


E 


Prin- 
cipal 
cities 


Satel- 
lite 
cities 


Indus- 
trial 

periph- 
eries 


Other 

cities 

over 

100,000 


Periph- 
eries of 
D cities 


35.1 


2.9 


18.2 


6.9 


1.6 


17.6 


3.9 


7.1 


3.0 


1.1 


.5 


1.3 


.4 


.4 


.7 


13.6 


1.4 


8.4 


2.6 


1.1 


.4 


.5 


.5 


.4 


.7 


19.9 


13.4 


34.6 


2.9 


1.2 


.6 


4.6 


1.9 


.4 


.8 


31.7 


2.5 


15.4 


8.8 


1.4 


.9 


.9 


.8 


1.3 


.9 


34.4 


4.7 


15.0 


5.1 


.1 


1.0 


1.6 


.8 


.7 


.1 


22.7 


10.7 


28.1 


.4 


.4 


.6 


3.7 


1.5 


.1 


.3 


10.7 


.6 


31.1 


1.9 


.9' 


.3 


.2 


1.7 


.3 


.6 


23.1 


3.0 


53.1 


1.4 


.5 


.7 


1.0 


2.9 


.2 


.3 


73.9 


1.0 


4.0 


6.8 


.5 


2.1 


.3 


.2 


1.0 


.3 


05.2 


4.2 


16.0 


2.3 


.1 


1.9 


1.4 


.9 


.3 


.1 


83. ,1 


1.6 


3.2 


3.7 


.1 


2.4 


1.6 


.2 


.5 


.1 


74.1 


3.4 


8.9 


.5 




2.1 


1.2 


.5 


.1 




27.6 


5.1 


12.9 


3.0 


.3 


.8 


1.8 


.7 


.4 


.2 


7.6 


.6 


41.2 


14.9 


4.1 


.2 


.2 


2.3 


2.2 


2.6 


30.5 


1.3 


8.3 


14.2 


1.2 


.9 


.4 


.5 


2.1 


.8 


58.0 


4.9 


20.7 


6.5 


.3 


1.7 


1.7 


1.1 


.9 


.2 


10.0 


1 


25.3 


.8 


1.7 


.3 


.03 


1.4 


.1 


1.1 


43.3 


7.9 


30.7 


3.8 


1.7 


1.2 


2.7 


1.7 


.6 


1.1 


20.0 


4.1 


51.4 


5.3 


3.7 


.6 


1.4 


2.8 


.8 


2.3 


53.6 


1.8 


19.3 


5.0 


1.6 


1.5 


.6 


1.1 


.7 


1.0 


33.6 


1.7 


20.4 


11.8 


.4 


1.0 


.6 


1.1 


1.7 


.3 


60.5 


1.9 


18.5 


3.6 


2.2 


1.7 


.7 


1.0 


.5 


1.4 


35.1 


2.6 


22.4 


8.6 


1.4 


1.0 


.9 


1.2 


1.2 


.9 


26.5 


3.4 


24.5 


1.4 


.3 


.8 


1.2 


1.3 


.2 


.2 


53.9 


.6 


16.1 


10.7 


.6 


1.5 


.2 


.9 


1.6 


.4 


46.5 


.8 


22.6 


20.3 


.9 


1.3 


.3 


1.2 


2.9 


.6 


63.4 


.6 


17.9 


1.0 




1.5 


.2 


1.0 


.1 




74.8 


1.9 


6.0 


7.6 


.2 


2.1 


.7 


.3 


1.1 


.1 


55.2 


4.6 


13.3 


7.8 


.6 


1.6 


1.6 


.7 


I.l 


.4 


65.4 


6.0 


4.7 


9.3 


(') 


].9 


1.7 


.3 


1.3 


(<) 


67.1 


7.4 


22.1 


7.1 


1.3 


1.6 


2.6 


1.2 


1.0 


.8 


18.3 


.1 


10.2 


6.9 


12.6 


.6 


.03 


.6 


1.0 


7.9 


22.9 


10.2 


24.8 


6.1 


.8 


.7 


3.5 


1.4 


.9 


.5 


65.7 


6.8 


16.5 


5.4 


.9 


1.6 


2.0 


.9 


.8 


.6 


56.4 


2.3 


20.0 


2.0 


6.6 


1.6 


.8 


1.1 


.3 


4.1 


66 8 


2.1 


13.8 


4.8 


2.9 


1 9 


■ 7 


.8 


.7 


1.8 



Indus- 
trial 

coun- 
ties 



O 

Smaller 
detached 
cities 
and 
rural 
areas 



9.3 

9.7 

1.0 
24.6 

2.6 
11.9 

1.3 
11.2 

1.2 
12.8 

1.4 
17.8 

1.9 
12.2 

1.3 
12.4 

1.3 

2.2 
.2 

1.2 
.1 

2.3 

.2 

5.3 

.6 

25.5 

2.7 

2.4 

.3 

13.6 

1.6 

4.3 
.5 

7.5 
.8 

6.6 
.7 



5.0 

.6 

8.0 



10.1 
1.1 

27.8 
3.0 

9.1 
1.0 

5.7 

.6 
9.2 
1.0 
1.8 

.2 
6.7 

.7 
3.7 

.4 
1.2 

.1 
4.3 

.5 

11.2 
1.2 

5.0 
.5 

6.6 

4^3 
.5 



26.0 

57.6 
2.2 

48.4 
1.9 

16.2 
.6 

29.0 
1.1 

27.9 
1.1 

19.9 
.8 

42.6 

1.6 

6.5 

.3 

11.6 
.4 

11.0 
.4 

5.6 
.2 



.3 

25.6 
1.0 

29.2 
1.1 

30.9 
1.2 

5.3 
.2 
54.6 
2.1 
6.0 
.2 

7.2 
.3 

13.7 

.5 

24.1 



19.9 

.8 

16. 1 
.6 

9.0 
.3 

3.2 

. 1 

17.9 

.7 

7.7 

.3 

11.8 

.5 

11.9 

.5 

3.8 

.1 

47.6 

1.8 

24.0 
.9 



6.1 
.2 
5.3 



Industry 



Printing and publishing 

book and job 

Quotient 

Printing and publishing 
newspaper and period- 
ical - 

Quotient _. 

Hardware 3 

Quotient 

Paper 

Quotient 

Petroleum refining 

Quotient 

Chemicals 3 

Quotient 

Cigars and cigarettes 

Quotient 

Planing mill products 

Quotient 

Flour and other grain 

products 

Quotient 

Clay products (other 

than pottery) 

Quotient 

Rayon and allied prod- 
ucts 

Quotient 

Meat packing, wholesale. 

Quotient.. 

Bread and other bakery 

products 

Quotient 

Lumber and timber 

products.- 

Quotient 



Prin- 
cipal 
cities 



65.6 
1.9 



44.5 

1.3 

45.5 

1.3 

5.5 

.2 

8.7 

.2 

17.0 

.5 

26.9 

.7 

26.9 

.8 

24.5 

.7 

9.3 
.3 

4.2 

.1 

60.7 

1.4 

50.2 
1.4 

2.2 
.1 



Satel- 
lite 
cities 



3.6 
1.2 



1.5 

.6 

.9 

.3 

.6 

.2 

7.5 

2.6 

4.4 

1.6 

2.5 

.9 

1.3 

.4 

.1 
.03 

.2 
.1 

.1 

.03 

3.2 

1.1 

3.6 
1.2 



Indus- 
trial 

periph- 
eries 



6.5 
.4 



7.3 
.4 



31, 

1.7 
24.2 

1.3 
27.8 

1.6 
46.8 

2.5 

10.8 

.6 

10.0 

.6 

5.6 



25.7 
1.4 

21.1 
1.2 
10.3 



8.6 
.6 



2.2 
.1 



Other 
cities 
over 

100,000 



10.8 
1.6 
5.3 

.8 
2.7 

.4 
1.1 

.2 
1.7 

.2 

24.3 

3.5 

9.4 

1.4 

10.3 
1.6 

2.6 

.4 

1.2 

.2 

14.6 

2. 1 

12.1 
1.8 

2.0 
.3 



Periph- 
eries of 
D cities 



0.1 
.1 



.7 

.4 

.7 

.4 

1.4 

.9 

9.2 

6.8 

2.4 

1.5 

.1 

.1 

1.3 



3.7 
2.3 

12.4 
7.8 
1.4 



Indus- 
trial 

coim- 
ties 



4.0 

.4 



6.0 

.6 

9.9 

1. 1 

15.7 

1.7 

18.6 

2.0 

.7 

.1 

21.4 

2.3 

10.2 

1.1 

3.6 
.4 

6.6 

.7 

20.6 

2.2 

2.6 

.3 



4.1 
.4 



G 

Smaller 
detached 
cities 
and 
rural 
areas 



10.5 
.4 



29.2 

1.1 

6.0 

.2 

49.9 
1.9 

27.1 
1.0 

28.0 
1.1 

15.0 
.6 

40.9 
1.6 

55.1 
2.1 

1.9 
2.0 

40.4 

1.6 

17.2 

.7 

19.2 
.7 

88.3 
3.4 



1 Percentage in a particular industry divided by percentage in all manufactures. 

2 See Carter Goodrich and others, Migration and Economic Opporlnni/y, University 
of Pennsylvania Press, Philadelphia. 1936, pp. 318-320 for classification of areas and 
pp. 708-734 for data on the percentage of wage jobs in each industry. 

3 Not elsewhere classified. 

* Less than one-twentieth of 1 percent. 

iiig.^ For men's and women's clothing the proportion 
of jobs in principal cities is approximately twice that 
for manufactures as a whole. Chemicals and steel 
works and rolling mills show high proportions of 
manufacturing employment in industrial peripheries, 
quotients of 2.5 and 2.8. On the other hand, jobs in 
the foundry and machine-shop products group are dis- 
tributed among types of industrial areas approximate- 
ly in accord with the pattern of manufacturing as a 
whole. 

Relative Distribution by States 

The extent to which an industry is concentrated in 
different areas has often been indicated on maps, by 
means of shading.^ But in dealing with locational 
problems the analyst may require a quantitative meas- 



3 For each type of area, the upper limit of the measure is set by its 
proportion of the national total. Thus, for principal cities with 35.1 
percent of all manufacturing wage earners in 1929, the measure cannot 
exceed 2.8, whereas for satellite cities with 2.9 percent the measure may 
reach 34.5. 

• See, for example, Maryland State Planning Board, Economic Studies. 
These studies include such maps for the United States as a whole and 
not merely for Maryland. 



rndustrial Location and National Resources 



107 



lire, and not merely a qualitative indication, of local 
concentration. Since localization in a given industry 
may be considered to occur when a particular industry 
deviates from a common pattern, a measure may be 
obtained for a specific area by dividing the share of 
the national total for a given manufacturing industry 
in the area by its share of all manufacturing. This 
measure, which will be termed herein, the "location 
quotient," indicates only the relative location of the 
manufacturing segment of the economy. It has been 
calculated by States (on the basis of the Census of 
Manufactures for 1939), for 127 of the country's 
leading industries, as shown in table 2 '. The higher 
the location quotient in any instance, the greater the 
degree of localization of that particular industry as 
compared to all manufacturing. To cite one illustra- 
tion from the table, Michigan has 63.87 percent of all 
Avorkers in automobile factories, but it has only 6.62 
percent of the nation's total manufacturing wage 
earners. The location quotient for automobile fac- 
tories in Michigan is thus 9.65, an unusually high ratio. 
Divergent location patterns are shown for different 
industries. It would be inadvisable to attempt to blue- 
print the same locational policy for each of them. It 
is obvious that coal mining must be centralized where 
the most accessible deposits of coal are situated; but 
almost equally urgent conditions may be determined in 
the localization of certain manufactures. Automobile 
factories, for example, show a very high degree of 
localization. The location quotients range from 9.65 in 
Michigan to zero in many States. Automobile factories 
have found survival value, probably allied closely to 
economies of large-scale production, in nut being dis- 
tributed parallel with the wage-earning population in 
manufacturing as a whole. A similar deviation, 
though to a lesser degree, is shown by blast furnaces 
and rolling mills, generating machinery, and lighting 
fixtures. On the other hand, sheet metal and non- 
ferrous metals work is normally conducted in plants 
scattered throughout every major manufacturing re- 
gion. The making of paper containers is even more 
decentralized. 

Degree of Localization of Industries 

The location quotient measures for a particular area 
the degree to which a given manufacturing industry is 
localized, as compared with manufacturing generally. 
To enable comparison of the locational structure of an 
industry for the entire countrv with the national 



structure of industry generally, a different measure is 
needed. The measure adopted here, called the "co- 
efficient of localization," is the sum of the plus differ- 
ences (or, since they total the same, the minus differ- 
ences) between the State percentages of workers in 
the given manufacturing industry and the State per- 
centages of workers in all manufacturing industries. 
The coefficient for each industry considered is given in 
the last column of table 2. It is clear that a coefficient 
of zero signifies complete coincidence of the distribu- 
tion of the particular industry with that of manufac- 
turing in general (i. e., no concentration), and that the 
more nearly the coefficient approaches one the greater is 
the differentiation.'' Thus automobile factories show, 
in the percentage of workers, plus differences from all 
manufacture in three areas, Indiana, Michigan, and 
Wisconsin. The differences are 3.21, 57.25, and 1.05, 
respectively, a total of 61.51 percent, or a coefficient of 
0.62. 

The value of the coefficient depends to some extent 
on the areas into which a country is divided and on 
the location of the boundaries. Division of the country 
into smaller units would give a more detailed measure- 
ment and a higher figure; but unless an industry is 
irregularly distributed within the divisions chosen, as 
is rayon production or airplane assembling, further 
subdivision would make only a small difference in the 
magnitude of the coefficient. 

An examination of the locational quotients and coeffi- 
cients shown in the table will reveal how widely varied 
is the locational structure of American industries. 

Many manufacturing industries have extremely low 
coefficients and resemble in this respect the residentiary 
service industries. It is clear that some production has 
■ to be located close to population centers, because of 
perishability (baking, for example) or because of need 
for close communication with the consumers (i. e., 
newspapers). 

Geographic Association of Industries 

The extent to which the distribution of an industry 
conforms to or deviates from the distribution of popu- 
lation is shown roughly by the coefficient of localiza- 
tion, since there is a somewhat close correspondence 
between the distribution of manufacturing and that of 
population.' Tlie locational association of any par- 
ticular industry with the final consuming market is the 
complement of the corresponding localization measure. 



' K number of industries are unrepresented in certain States because 
of the nondisclosure rule of the Ccnsua of Mnnutnciurm ; sucli cases 
are indicated in the table by the reference "a." Note also that States 
with a small proportion of manufacturing have been liimpeil together. 



" The measure cannot reach one because that would require a given 
Industry to be located in an area with zero percent of all industry. 

'As shown in table 4, p. 1-0, only 23.41 percent of all employed 
workers in 1940 were in niannfacturinj^. Nevertheless, as shown io 
table 3. p. 119. the a.<iSociati(in of total wage earners with total popula- 
tion is 0.7**, which is hiRh enough to validate the proposition here 
advanced. 



108 



National Resources Planning Board 



Table 2. — Disirihution nj wage earners among States or Stale groups, and coefficient of 

[First line for each industry, percentage of United States total; second 



Industrv (classified according 
to the Census for 1939) 


a Qj 
3 a 
OS 


a 
'3 


£ 

ll 

w 


t 

3 

1 


x) 
a 

03 

s 
■§ 

o 


3 

1 

a 
a 
o 

U 


M 
o 




'a 

□ 
a 

Pi 


o 

i 


3 

a 


a 


a 

i 


a 
1 


3 
S 

.s 


S 

a 
a 

S 


03 

O 




7. 887. 

24.8 
201.6 


0.96 

.04 
■ Oi 

.58 
.60 

(■) 
(•1 

.12 

.13 

1.02 

t.oe 


0.98 

(•) 
{•) 

.56 
.67 

(■) 
(•) 

1.91 
1.95 

(') 
(■) 

(•) 
(•) 

.49 
.60 


5.84 

.14 
.OS 

6.73 
.9S 

5.62 
.96 

2.07 
.35 

.33 
.06 

2.09 
.36 

4.16 
.71 


1.35 

(•) 
(•) 

.84 
.6! 

(») 
C») 

.88 
.65 

54 
■iO 


2.96 

(') 
(•) 

1.71 
.68 

(•) 
(■) 

.59 

.SO 

.09 
.03 

.88 
.30 

1.07 
.36 


12.14 

7.66 
.62 

15.68 
1.28 

16.74 
1.30 

14.56 
1.20 

8.24 
.68 

12.18 
1.00 

8.21 
.68 


5.50 

.22 

.04 

4.81 
.87 

3.77 
.69 

1.95 
.35 

4.50 
.82 

3.74 
.68 

3.65 
.66 


10.88 

2.95 
.27 

10.80 
.99 

11.39 
1.05 

6.58 
.51 

4.22 
.39 

10.30 
.95 

6.32 
.58 


7.59 

4.36 
.57 

7.29 
.96 

8.64 
1.13 

6.85 
.90 

3.11 
.41 

7.81 
1.03 

4.88 

■ 64 

4.48 
.69 

3.33 

■ 44 

5.07 
.67 

1.12 
.15 

6.22 
.82 


3.52 

4.47 
1.27 

2.48 
.70 

2.89 

.82 

2.10 
.60 

6.47 
1.84 

4. .67 
1.30 

2.78 
.79 

(■) 
(•) 

1.65 
■ 44 

3.60 
1.02 

1.62 
■46 

6.16 

L4e 


7.56 

6.60 

.87 

7.61 
.99 

12.63 
1.66 

7.24 
.96 

4.88 
.66 

6.97 
.92 

6.94 
.9S 

24.25 
3. SI 

19.60 
2.59 

4.08 
.64 

4.36 
.68 


6.62 

2.44 
.37 

4.57 
.69 

4.05 
.61 

1.05 
.16 

2.97 
.45 

5.12 
.77 

2.90 
■44 

16.22 
2.30 

1.79 

■ 27 

1.85 

■ 28 

.46 

.07 

4.83 

■ 73 


2.55 

1.34 
.53 

2.22 

.87 

1.98 
.78 

1.14 

■ 45 

4.34 
1.70 

9.88 
S.87 

2.28 

■ 89 

(•) 
C) 

1.63 

■ 64 

2.88 
LIS 

.63 

.16 

8.87 
3.48 

(«) 
(•) 

.21 
.08 


2.26 

7.04 
S.12 

3.03 
1.34 

4.87 
2.15 

4.16 
1.84 

. 77 
.34 

10.33 
4-67 

3.31 
L46 

3.53 
1.56 

3.79 
1.68 

7.78 

S^U 

4.77 
2.11 


1.01 

8.99 
8.90 

1.74 
1.72 

1.45 
1.44 

1.56 
1.5S 

2.09 
2.07 

4.58 
4.53 

1.83 
1.8/ 

(•) 
(■) 

1.09 
1.08 

7.34 

7.27 

10.41 
10. SI 

13.31 
13.18 


0.83 

1.09 
l.Sl 

1.49 
1.80 

3.01 
S.39 

2.81 
S.9S 

1.14 
1.34 

.29 
.35 

1.51 
1.82 

(■) 
(") 

.68 
.70 

9.20 
11.08 

19.12 
SS.04 

9.48 
11. 4S 


Group 1— Foods 




Bread, etc.----- -.. 




29.2 




Prepared feeds, for animals 


16.4 


Pickled, canned, and dried 
fruits and vegetables 


107.9 




36.1 




Non-alcoholic beverages 


21.3 


.60 
.6B 




10.4 




















Candy and confectionery 


49,7 


.04 
■ 04 

.10 
.10 

(•) 
(•) 

(•) 
{») 

14.58 
15.19 

.03 

.03 

.70 

.73 

2.80 
S.9B 

.06 
.06 


(•) 
(•) 

(•) 
(•) 

(") 
(') 

.20 

.to 

.64 

.66 

.19 
.19 

2.28 
B.S3 


11.66 
1.99 

1.74 
.30 

1.30 
.«« 

.07 
.01 

.17 
.03 

.34 
.06 

9.15 
1.67 

9.29 
1.69 

12.53 
i.l6 

11.38 
1.95 

2.49 

.J,S 

11.74 
i.Ol 

.93 
.16 

4.90 
.84 

3.92 
.67 

2.58 
• « 

31.09 
6.32 

16.49 
S.65 


.39 
.S9 

.03 

.OS 

(■) 
(•) 


.91 
.31 

.22 
.07 

(•) 
(•) 


12.60 

1.04 

4.80 

■ 40 

1.39 

■ 11 

.88 
.07 

.13 
.01 

2.95 

■ 24 

1.37 
.11 

1.34 
.// 

18.08 
1.49 

34.44 
2.84 

6.33 

.52 

2.57 
.21 

1.65 

■ H 

11.21 
.92 

7.37 
.61 

3.42 
.28 

4.89 
.40 

8.41 
.69 


3.81 
.66 

2.56 

■ 47 

.50 
.09 

(■) 
(") 

(•) 
(') 

11.31 
2.06 

2.18 
.40 

.40 
.07 

2.95 

■ 54 

8.77 
1.69 

9.67 
1.76 

4.93 
.90 

(•) 
(■) 

5.20 
.95 

22.66 
4.12 

6.28 
1.14 

7.66 
1.39 

20.40 
3.71 


12.09 
1.11 

4.24 
.39 

2.40 
.22 

.77 
.07 




119.9 




Poultry, dressing 


14.5 




18.0 










15.7 


(•) 

.04 
.03 

4.18 
3.10 

3.45 

e.56 

.69 
.51 

1.34 
.99 

5.88 
4.36 

10.60 
7.85 

3..'>4 

s.6e 

1.96 
1.46 

(•) 
(■) 

16.09 
11. 9S 

12.87 
9.63 


.63 

.SI 

2.80 
.96 

2.00 
.68 

2.20 

■ 74 

.39 
.13 

4.60 
1.55 

(•) 
(•) 

3.15 
1.06 

11.08 
3.74 

4.42 
H9 

4.92 
1.66 




















Group 2— Tobacco Manu- 
factures 

Cigars and cigarettes 


78.3 


19.93 

1.83 

.32 

.OS 

1.56 

.14 

10.76 
.99 

20.47 
1.88 

55.24 
5.08 

18.61 
1.70 

10.43 
.96 

56.91 
6.14 

42.63 
3.92 

36.27 
3.33 

8.77 
.8/ 

7.14 
.66 


2.77 
.36 

.01 

.001 

.03 
.004 

2.86 
.38 

2.89 
.38 


1.67 

■ 47 

.10 

■ OS 

.28 

■ 08 

(•) 


.38 
.05 

.65 
.09 

.22 

.03 

3.23 
.43 

.71 
.09 


2.00 
.30 

.11 

.02 

.05 
.01 

1.46 
.22 

.91 

.14 


.45 
.SO 


.06 
.06 


(■) 


Group 3— Textile-Mill and 
Other Fiber Products 

Cotton thread and yarn 


83.8 












325.6 


.25 
.10 

(■) 
(■) 


.04 

.02 

1.76 
.78 












Cordage and twine _. 


12.1 










Knitted cloth 


10.9 


(■) 










Rayon throwing, spinning, 


8.4 






























75.7 


2.68 
S.79 

(■) 
(■) 


1.69 
1.71 

».76 
1.08 


.10 
.01 

.36 
.05 


(•) 
(•) 

.47 

■ IS 


.31 

.04 

4.22 
.66 

4.20 
.66 


























61.9 




1.43 
.56 


(■) 












Silk throwing, spinning, yam, 


21.6 




.21 
■ 25 


















14.2 




































Hosiery, full-fashioned, _ 

Location quotient 


97.2 




(') 
(■) 

5.87 
5.99 

.61 

.se 


(•) 
(•) 

2.11 
.28 

.60 

.08 


4.88 
1.39 

.56 
.16 

.18 
.06 


.69 
.09 

.71 
.09 

.39 

.05 


.82 
.12 

.70 
.11 


5.05 
1.98 

.66 
.26 

.02 

.01 


(•) 
(•) 

(•) 
C) 

.41 
.18 


(') 

.25 
.26 


(■) 
(•) 

(•) 
(•) 


Woolen and worsted fabrics... 
Location quotient 


146.1 


6.01 

e.se 

1.68 
1.65 




60.2 


Location quotient 







See footnotes at end of table. 



Industrial Location and National Resources 



109 



localizatio7i for the United States^ selected mannjaciuring industries, 1939 
line, ratio of industry percentage to percentage for total manufacturing] 






0.74 



13.38 
IS.OS 



(*) 



3.94 
S.St 



'.24 

.71 

(") 
(•) 

2.25 

a.oi 

(■) 
•.27 

12.22 
16.61 

15.92 

13. no 

18 SS 






2.16 



1 1.01 
• 49 

3.00 
1.S9 

2.29 

I 3.35 

1.6S 



8.03 
S.7« 



'3.00 



2.70 
l.tS 



1.70 



2 69 

/.5« 



1.23 

.7« 



2 27 
J. 54 



.24 

■ li 



2.22 



i«1.53 



I 1.83 
.89 



5.59 



(•) 



.23 



.01 
.004^ 

.38 
.J» 

3.54 



2.36 
1.09 



.51 
.*4 



i«.66 
.So 



1.55 

.7« 



".40 



2.79 
1.19 



1.70 
/.OO 

.79 
.46 

.79 
• 46 

.60 
.S5 

.12 
.07 



8.60 
0.06 



3.78 
t.tf 



.26 






9.55 
S.6t 



4.37 

«.57 



3.88 
l.tS 



1.03 



9.24 



2.95 
1.74 



.68 



1.14 
.«7 



0.95 



.66 
.89 



.05 
.05 



(■) 
(■) 



1. n 
i.is 



.03 
.OS 



(•) 



1.28 



3.43 



1.18 
■ Si 



(■) 



1.17 
■ Si 






1.29 
■ S8 



(•) 
(•) 

.65 

.44 

■ 40 



19.63 
5.7* 



46.93 
IS. 68 

21.65 
e.Si 

8.14 
«.«■ 

3.58 
1.04 



7.95 



18.50 
5.S9 



36.08 

;o. 5« 



4.12 

;.«o 



1.61 



.29 
.18 

.Si 

{•) 
(•) 

.75 

.47 



1.06 



.27 
.17 



.03 
.04 



3.35 
108 



(•) 



5.13 
S.19 

21.67 
/S.4« 

1.33 

(■) 
(•) 



2.00 



1.27 
■ €4 



1.05 
.SS 






1.45 
.7.J 



1.24 
.61 






3.41 
L7I 



2.33 
;. /7 



. 17 
■ 09 



5.04 



15.70 
7. 85 



14.99 
7.50 



9.19 
4.60 



20.93 
6.10 



2.23 



5.67 
1.66 



15.58 
9.S8 



.iS 



.57 
.36 

(') 
(•) 



1.83 
.9* 



10.72 
6.S6 



1.64 



0.67 



(■) 
(•) 

1.22 

i.se 

(•) 
(•) 

.92 

i.-rr 



4.01 
5 99 

.57 
.86 

2.32 
S.4£ 



.26 
.S9 



(•) 



12.42 

IS. 64 



Z07 
1.04 

1.85 
.9* 

2.27 
1. 14 



0.80 



3.24 
.j.05 



.88 
l.IO 






2.10 



1.89 
«.J« 



.90 
/.JS 



1.34 
1.68 



4.57 
5.7i 



.14 

.;8 

.24 
.SO 

3.72 
^«5 



.01 
.01 



1.25 

/.5« 



1.67 



3.64 

e.i8 



1.76 

;.05 



3.70 



.40 

■ U 



2.87 
/.7« 



1.23 

.7.J 

1.27 
.76 

1.06 
.63 

1.13 



(') 

(■) 



3.76 

l.tS 



1.32 
.79 



2.02 
l.il 



8.80 
5.«7 



.21 
.31 



(•) 



.14 

.18 



1.21 

.7* 



17.32 

J0.J7 



2.3.3 
1.40 

.48 
.«9 

4.90 
t.93 

1.19 
.7) 

2.77 
/.66 



2.07 



1.19 
.57 



' 1.17 
.79 



1.91 

.91 



(•) 



4.00 
1.9S 



41 
.10 

.63 
.JO 

{») 
(•) 

.63 
.SO 

11.31 
5.46 



6.53 
S. /5 

9.51 
4.59 

7.41 
3.58 



.24 

.IS 



3.51 

;.70 



.01 



1.84 



1.76 
.86 



0.82 



3.65 
4.4s 



1.35 
1.6S 



< .m 

1.37 



2 54 

.3.10 



1.00 



3.14 
S 8« 



1.79 



" 4. 78 
1S.S8 



3.48 

4.«4 



(•) 



1.26 
LiO 

1.67 
;.86 

1.69 
1.88 



1.83 
S.05 



2 89 
J.f/ 



1.01 
I. IS 



.17 



(■) 
(•) 



.11 

.IS 



17.50 
/9.44 



1.55 

1.71 



2.30 
«.56 



(•) 



(■) 
(•) 

(•) 
(•) 



■S.2 .4 

"o.i . 

sill 



6. ,54 
4. 06 



2 80 

l.^i 



2 07 
I.S9 



4.17 
S..59 



2 13 

/.S« 

1.91 

; 19 

6,73 
4./S 



1.51 
.94 

3 29 
X.04 

9. S2 

e.io 

3.34 
S.07 

(•) 
(■) 



(■) 
(•) 



1.79 
1.11 



2 33 

.45 



(•) 



.37 

.ts 

(■) 



0.88 



1.96 
S. S.3 

(') 
(') 

M. 17 
4.79 



«2. 53 
3.61 



» 1.24 

;.94 



2. .56 
t.91 



11 39. 92 
47.5* 



II 1.01 
r36 



I! 2 14 
«.5S 



11 1.70 



IS 6. 86 
8.68 






(•) 



1.14 



3.43 
3.01 

1.23 
I. OS 

l.,52 
l.SS 

2.74 
t.40 



3.43 
3.01 



1.56 
1.37 



(•) 
(■) 



.95 
.83 



1.04 
.9/ 



l.O.i 
.9! 



3.14 
f.75 



.5.08 
4.46 



.45 
.39 



(•) 



0.81 



2.25 
t.78 



1.81 



3.88 
4 79 



.44 
.54 

(■) 
(•) 

.35 
■ 43 

.54 
.67 

1.37 
1.69 

1.93 
«.S8 

3.84 
4 74 



(■) 



.87 
/.07 



3 



3.49 



2 04 
.68 



5.59 
7.60 



4.80 
l.SS 



10.04 
«.8« 



24.02 
6 88 



5.31 
/.5« 



4.13 

;.J8 



18.73 
5.S7 



5.53 
/.58 



3.91 
l.li 



5.20 
1.49 



4.07 
J./7 



35.32 
10.11 



.90 
.*6 



.04 
.01 

.10 
.OJ 

1.73 
.50 

(•) 
(») 



.28 



0.42 
.07 



6.83 

■ 4i 



.10 
.07 



1.81 



21.65 
«.04 

.27 
./« 

.14 
.13 

1.48 
.'4 

.36 

.04 

1.68 
./5 



7.62 
i.09 



5.29 
.38 



5.87 
.« 



3.21 
.tl 



1.76 
./8 



15.55 
I.4fi 

3.61 
8.00 



10.61 
1.48 



1.12 
10.51 

8.60 
U.Ol 



13.88 



15.60 
9.60 



0.48 
.14 
.19 
.32 

.44 

.27 
25 



.74 
.28 
.45 
.68 
.59 
.83 



.55 



.73 
.70 
.37 



.66 
.59 
.61 

.49 
.65 
.52 
.54 
.51 



110 



National Resources Planning Board 
Table 2. — Distribution o/ wage earners among States or State groups, and coefficient of 



Imlustrv (classified according 
to tlie Census for 1939) 


United States, num- 
ber of wage earners 
(thousands) 


a 
"a 


New Hampshire, Ver- 
mont 


Massachusetts 


Rhode Island 


Connecticut 


4^ 


>> 

•-9 

5.50 
9. 00 

i.ei, 

16.95 
S.08 

16. 75 
.3.05 

3.00 

.66 

18.07 
3.29 

' 7.78 

' 4.46 
.81 

19.32 

3.61 

6.21 
;. 13 

7.38 
1.34 

3.58 
.66 

10 76 
1.96 

2.23 

■ 

36.09 
6.66 

4.05 

.74 

2.31 

.42 

.13 

.02 

1.10 
.20 

K22 
.22 

1.85 
.34 

2.68 

■ 49 

.85 
.16 

1.34 

■ 24 


1 

a 
c 

^ 

10.88 

10.50 
.97 

42.28 

S.89 

21.32 
1.96 

21.29 
1.96 

2,23 
.20 

28.62 
2.6S 

6.75 
.62 

16.62 
1.6S 

8.59 
.78 

16.03 

;,47 

15.87 
1.46 

2.99 

.17 

2.64 

• 24 

4.75 

• 44 

4.54 

■ 42 

2.71 
.26 

.44 

■ 14 

.67 
.06 

4.04 

.37 

7.33 
.67 

4.58 

.42 

2.20 
.20 

6.77 
.62 

.77 
.07 


5 


CO 

'■5 


1 

5 




Wisconsin 


i 


CO 
1 

.g 






-.887.0 
162.2 


0.96 

(•) 
(') 


0.98 

(•) 
(') 


6.84 

5.05 
.86 

2.48 

.4* 

19.40 

s.ss 

4.57 
.78 

3.31 

.67 

4.55 

.78 

2.87 

• 49 

4.42 
.76 

6.04 
I.OS 

4.35 

• 74 

7.38 

i.te 

4.31 

■ 74 

6.15 
1.06 

1.50 
.26 

12.92 
S.il 

.85 
.16 


1.36 

.12 
.09 

(•) 
(•) 

(•) 
C) 

(•) 
(■) 

.06 

.OA 

(•) 
M 

(•) 
(») 

1. 12 

.83 

(•) 
(■) 


2.96 

2. 78 
■ 94 

(•) 

C) 

8.74 
i.96 

.66 

.n 

14.05 

4.75 

5.11 
1.7S 

.32 

.;/ 

7.79 
S.6S 

7.23 

2.U 

.46 
.16 

2.45 
.«3 

2.62 
.89 

(•) 
(') 

(") 
(") 

(«) 
(•) 

(•) 
(") 


12.14 

45.88 
S.78 

29.43 
S.!,l 

18.66 
1.6i 

28.41 
l.Si 

38.40 

s.ie 

13.99 
1.16 

5.16 

.45 

38.24 
3.16 

33.72 
S.78 

31.41 
i.69 

8.76 
.72 

.58. 70 
i.8J, 

67.30 
5.61, 

44.17 
3.6i 

19.05 

1.67 

13.62 
1.12 

1.66 
■ Oi 

• 62 

.06 

3.99 
.SS 

7.06 
.68 

25.91 
S.IS 

2,81 
.29 

8.38 
.69 

1.46 
.12 


7.59 

1.67 
.22 

C) 
(•) 

.62 
.08 

3.03 
.40 

2.27 
.30 

3.74 

■ 49 

.20 

.OS 

5.37 
.71 

7.82 
I.OS 

4.26 
.66 

3.09 

■ 41 

1.58 

.21 

1.28 

.17 

.18 
.02 

3.36 

.44 

C) 
(•) 

.32 

.04 

2.63 
.36 

3.49 
■46 

20.96 
2.76 

3.01 
.40 

5.27 
.69 

4.24 
.66 


3.52 

1.05 
.30 

C) 
(•) 

(•) 
(•) 

3.73 
1.06 

2.47 
.70 

7.14 
2.03 

.69 
.20 

(») 
(•) 

1.27 
..36 

8.53 
2. 41 

.69 
.20 

(•) 
(•) 

(■) 
(■) 

(•) 
(•) 

.74 
.21 

1.75 
.60 

10.42 
2.96 

11.35 
S.22 

1.89 
■ 64 

3.51 
1.00 

2.66 
.73 


7.56 

7.72 
1.02 

.90 

.12 

1.15 
.16 

1.69 
.22 

8.93 
1.18 

.63 
.08 

5.14 

.68 

2.86 
.38 

6.31 
.8S 

10.17 
1.36 

6.04 
.67 

4.91 
.65 

6.73 
.76 

5.77 
.76 

5.31 
.70 

4.36 
.68 

.31 
■ 04 

6.51 
.73 

9.24 
1.22 

10.76 

1.42 

6.52 
.73 

4.52 
.60 

7.52 
.99 


6.62 

.97 
.16 


2.65 

.78 
.31 


2.26 

3.60 
1.69 


1.01 

.62 
.61 


0.83 

.22 

.27 


Grocp 4— Apparel and Re- 
lated Products 

Women's outerwear (eiccpt 
wool). / _,_ 


Children's dresses 


15.1 
















Women's and children's cotton 


11.3 






(•) 
(•) 

3.01 

.4S 

7.14 
1.08 

.04 
.01 

2.17 
.33 


2.90 
1.14 

(■) 
(•) 

h68 
.66 


(■) 
(•) 

(■) 
(■) 

(•) 
(«) 

5.43 
2.40 

9.08 
4.02 

3 11 

1.38 

5.86 
2.69 

1.68 
.70 

6.87 
3.04 

2.25 
1.00 

2.01 
.89 

1.60 
.71 

2.20 
.97 

10.49 
4,64 

.11 

.05 

.74 

■ SS 

l.flO 

■ 84 

.39 
.17 

.76 

.34 

1.29 
.57 

2.30 
1.02 

1.80 
.80 


(•) 
(") 

.30 
.SO 


(•) 
C) 








Knitted garments 


61.1 


(•) 


15 1. 27 
4.70 




Corsets and allied garments 


18.8 












Men's and hoys' shirts 


70.5 


(■) 
(•) 

.46 

• 48 


(«) 
(■) 

.53 
.54. 


(•) 
W 

1.82 
1.80 

C) 
(») 

.34 

.34 

.33 

.S3 

.89 
.88 

.36 
.36 

(•) 
(•) 

(■) 
(») 

(•) 

w 

3.14 
3. 11 

3.41 

3.38 

.45 

.46 

2. .50 
2.48 

.31 

.St 

.30 

.SO 

.93 
.92 

1.63 
1.51 

4.18 
4-14 


(•) 

C) 

1.45 
1.75 

(•) 
(•) 

.19 

.23 

C) 
C) 

(») 
(•) 

.02 
.02 

6 86 
7.06 

.42 
.51 

(•) 
(•) 

.26 
.31 

.11 

.13 






57.0 




Women's and children's silk 


20.6 








Men's neckwear 


9.6 






.92 

■ '4 

.10 
.02 

.20 
.03 

.13 

.02 

3.51 

.53 

(■) 
(•) 

.13 

.02 

.41 
.06 

3.94 
.60 

1.68 
.26 

2,53 
.S8 

6.61 
1.00 

12.88 
1.96 

2.14 
.32 

7.73 
1.17 

1.50 
.23 


(') 

.48 
.19 

(•) 
(-) 

C) 
C) 

(•) 
(•) 

(») 
(■) 

(■) 

(») 

1.25 
.49 

3-18 
1.26 

1.92 
.75 

fi.72 
2.64 

3.19 

1.26 

1.67 
.65 

5.61 
2.16 

2.31 
.91 

(•) 
(") 






137.5 


(•) 
(») 

(•) 
(■) 


(■) 
(•) 




Trousers (semidress) 


19.5 




Women's coats and suits. _ 

Location quotient 


45.5 
9.3 






8.6 









Curtains and draperies 


16.9 














12.0 


(•) 
(■) 

5.14 
6.SS 

1.15 
l.iO 

..57 
.69 

.30 
.5/ 

2.22 
i.Sl 

13.24 
IS.79 

(•) 
(•) 


.95 
.97 

1.16 
1.18 

.90 
.92 

1.65 
1.6S 

■«3.70 
S.Sl 

10.00 
10. BO 

(•) 
(■) 




Groups s and 6— Forest 
Products 

Logging camps and logging 


22.8 












266.2 


.2fi 

• 04 

1.62 

• »S 

3.48 
.60 

1.42 
.84 

4.17 
.71 

3.29 
.66 

C') 
(') 


.01 

.01 

.25 
.19 

.46 
.SS 

.29 

.SI 


04 

.01 

.70 
■ «•( 

.37 
.IS 

.87 
.i9 

.60 

.to 

(') 
(') 




Planing mill products, not 

elsewhere classified... 

Location quotient 


62.8 


Household furniture _ 


94.8 


Office furniture 

Location quotient _. 

Wooden boxes (except cigar 
boxes) _. 

Location quotient 


11.8 
25.4 


Wood products, n. e. c... 

Location quotient 


22.0 


Wood preserving 


11.2 


Location quotient 



See footnotes at end of table. 



Industrial Location and National Resources 



111 



localization for the United States, selected manufacturing industries, 1939 — Continued 



North Dakota, South 
Dakota, Nebraska, 
Kansas 


II 

II 

5° 


5 

c 

> 


.55 
c 

1 

> 


OS 

D 

e 

O 
o 


a 

3 

a 
o 

CO 


8 
a 


C0 

o 


1 
1 


i 

a 

s 


1 
N Alabama, Mississippi 


Arkansas,Oklahoma 


3 


1 


Montana, Idaho, 
o WyoininR, Colorado, 
™ New Mexico. Ari- 
* zona. Utah, Nevada 


a 


bo 

a 
2 

& 
1.14 


a 
0.81 


□ 


a 


•0^ a 

.ill 

c-c « 

PS 




.2 

e 
§ 




0.74 


2.16 


1.70 


0.95 


3.43 


1.61 


2.00 


0.67 


0.80 


1.K7 


0.82 


0,90 


1.61 


3.49 








(•) 


11.04 
.60 

(") 
(■) 

(■) 
(■) 

(■) 
(•) 

C) 
(•) 

8.77 
i.06 

2.09 
.97 


.08 
.05 

.88 

(•) 

2.53 
I.i9 


.33 
.35 




(■) 


.38 
.19 


.03 
.04 


(■) 


.24 
■ 14 

C) 
(•) 


(•) 
(■) 


.15 
./8 

(•) 
(•) 


(■) 


.95 

.M 

1.07 
.66 


(■) 
(•) 


.25 


.02 
.OS 


3.97 
1.14 

1.14 
.SS 

.94 
.17 


2.60 
.SS 

4.87 
.30 

9.00 
.6t 


11.35 

16. 12 
18.95 


0.39 

.60 












2.52 
.75 


(■) 
(■) 














48 


























5.95 
/ 7S 




1.61 
.81 






6.40 
3.83 


'2.59 
1.76 








.56 
.64 


.20 
.18 


.64 
.79 


2.19 
.63 


7.20 

• 64 


11.19 


37 






















(") 














(*) 




(■) 




2.94 
.84 


1.20 
.11 


11.16 


.52 






















(•) 
(•) 

(•) 
(•) 


1.61 
95 


(') 
(') 

.51 

.5i 


1.58 
• 46 


1.03 

.64 


2.13 

1.07 




(•) 


2.00 
l.SO 


4.56 
S.SO 






.15 
.09 








1.37 
.39 


.5.91 
.5S 


11.20 


.37 


5.82 
S.iS 


4.20 
i.si 




5.29 
2.65 


.35 
.51 


2.46 
S.08 


5.89 
3.63 


3.98 

1.9S 


»1.46 

3.17 


1.12 

/.24 


7.35 

4.«r 


.74 

■ 84 


1.05 
.9S 


.58 
.7* 


3.81 
1.09 


.47 

.18 


2.61 


..35 








(■) 
(■) 


(•) 
(•) 




(•) 
(•) 

.79 
• 4" 














.50 
..9/ 

l.U 
.69 


(») 
(') 


(•) 

(•) 
(") 


(■) 
(■) 


2.86 
.81 

6.31 
1.81 


3.40 
.31 

5.22 
.36 


II). ;s 


.51 




















(') 
(•) 

(•) 
(•) 


3.46 




(•) 
(') 








2.52 
2.80 


14.31 


..36 










^8.04 
i.i7 


1.65 
.97 


(•) 




.71 
.36 




1.83 
I.S9 


1.76 
1.06 






1.08 
l.SO 


.15 
.09 


(■) 
(•) 


.03 
.03 


.13 
.16 


1.65 

.47 


1.40 
.15 


9.57 


.37 


.25 


4.40 
i.Ol, 


(*) 
(■) 


(•) 




(•) 


10.43 
6.1! 




2.32 

S.90 


(") 






2 44 

« 7; 


5.09 
3.16 




.10 

.09 




3.04 

.87 


8.10 
.61 


13.31 


.33 




1.86 
.8« 


(•) 
(') 










.09 
.13 












.32 

.10 




.15 
.13 


.62 


5.80 
1.66 


.35 
.07 


4.89 


.54 
























.37 

.17 


(*) 






















r^ 




(") 
(■) 


(■) 
(') 


1.62 
.46 


6.86 
.37 


18.40 


.55 
















2.06 
.95 

(•) 
(■) 
































1.03 
.SO 

3.33 
.95 


1.75 
.13 

2.57 
.SI 


13.14 

12.07 


.63 










































1.99 

.58 


1.85 
1.16 


36.99 
18.50 




(•) 


2.68 
1.60 


f:? 






.59 

.37 


(■) 


.50 

.44 


(•) 
(*) 


.50 










>« 1. 18 

t.se 


1.36 
.6S 


4.70 
1.76 




5.35 
1.56 




4.23 
S.ll 






5.66 
3.39 


S1.96 
I.3S 




7.74 
S.60 


6.94 

4. SI 






2.62 
.1«S 


6.49 
1.86 


9.27 
.66 


14.29 


.41 


(•) 
(•) 




1.17 
.69 


.27 

.ts 


1.22 
.36 


2.01 

I.S6 


1.39 
.70 


4.18 

e.H 


.18 
.SS 




2.64 


1.49 

1.8! 


1.18 
1.31 


2.30 
1.4S 


" 4. 72 
5 6! 


31.39 

17.54 


25.29 
31.11 


1.24 
.86 


.50 
.04 


13.15 


.72 


(') 
(■) 


.34 

.16 


3.73 
t.l9 


1.89 
/.99 


4.54 
l.SS 


3.65 

i.rr 


3.62 
1.81 


4.90 
7.31 


1.15 

l.U 


1.95 
1.17 


12.42 
6.00 


6.88 
8.39 


6.39 
7.10 


5.47 
3. 40 


J4.21 
4-84 


11.36 
9.96 


10.93 
13.49 


6.17 
1.77 


.18 


.48 


.65 


"1.09 
1.6i 


1.37 
.63 


3.66 
1.15 


.68 

.71 


5.55 
1.6t 


1.42 
.88 


3.32 
1.66 


1.49 
l.SS 


1.30 
1.63 


5.32 
3.19 


7.61 
3.68 


2.77 
S.S8 


2.32 


3.10 
1.93 


^1 1.47 
U7o 


5.15 

4.61 


2.06 
!.64 


1.10 
I.ll 


.a5 

.71 


.117 


. 4.' 


(•) 
(■) 


.56 


8.43 

4.96 


(■) 
(■) 


14.10 
i.ll 


1.53 
.96 


1.84 
.9* 


.40 
.60 


3.60 
4.60 


2.89 
1.73 


2.13 
.09 


M.83 
3.98 


1.07 
1.19 


.90 

.66 


(■) 


1.21 
2.06 


1.76 
1.17 


3.68 
1.05 


.59 
.19 


3.18 


.34 


f:^ 








4.30 

1.15 






(■) 




(•) 
(") 

3.12 
1.S7 


(■) 


(•) 












1.07 
.31 


2.19 

.*7 


7.99 


.45 
















».48 
.71 


2.07 
.96 


2.14 


.47 
.49 


2.89 
■ 84 


2.84 
1.78 


8.67 
i.t9 


9.35 
13.96 


1.41 
1.76 


5.97 
t.SS 


•.92 
t.OO 


2.10 
l.SS 


4.02 

t.eo 


25 1.02 

/.40 


3.19 
S.SO 


2.31 
1.86 


6.79 
1.96 


.69 
.8i 


.85 


.41 


n 


i».24 
.IS 


.75 
■ U 


1.22 

;.«8 


2.56 
.74 


.19 

.li 


.76 
.38 


.08 
.It 


1.38 
/ 73 


9.93 
6 96 


1.91 
.9t 


<4.46 

9 70 


.66 
.7S 


.74 
.46 

10.86 
6.74 




.73 

.64 


.83 
I.Ot 


2.05 
.59 


.82 


1.26 


.36 


'A 


(•) 


3.86 
«.f7 


(■) 


1.78 
.5S 


3.81 
t.S7 


4.84 
«.4« 


3.35 
6.01 


3.62 
140 


2.23 
I.S4 


13.64 
6.69 


4.68 
6.71 


4.72 
6. 14 


«3.56 
7.74 


3.12 

«.74 


2.06 

1.54 


2.18 
.St 


6.41 
.38 


16.85 


.51 



112 



National Resources Planning Board 



Table 2. — Distribution of wage earners among Stales or Stale groups, and coefficient of 



Industry (classified according 
to the Census for 1939) 



Total manufacturing- 



Groups 7 and 8— Paper-and 
Printing 



Pulp mills. _ 

Location quotient. 



Paper and paperboard mlllS-, 
Location quotient 



Converted paper products . 
Location quotient 



Paper containers, not elsewhere 

classified __ 

Location Quotient 



Newspapers 

Location quotient. 



Bookbinding. 

Location quotient. 



Lithoeraphing,. 
Location quotients 



Groups 9 AND lO— Chemicals 
AND Related Products 

Fertilizers _ 

Location quotient 



Cottonseed nil, cake, etc.. 
Location quotient 



Drugs and medicines. 
Location quotient 



Perfumes and cosmetics.. 
Location quotient 

Soap and glycerin 

Location quotient 



Paints, varnishes, lacquers. 
Location quotient 



Chemicals, not elsewhere clas- 
sified 

Location quotient 

Petroleum refining 

Location quotient 



Groups 11 and 12— Rubber 
and Leather 



Rubber products.. 
Location quotient.. 



Leather, tanned and curried 

Location quotient.. ___ 



Boot and shoe cut stock. 
Location quotient 



Footwear... 

Location quotient. 



Leather goods 

Location quotient. 



Group 13— Stone, Clat, and 
Glass Products 



Brick and hollow tile . 
Location q^totient 



,oi 



26.9 
110.6 



21.8 



62.5 



97.0 
25.7 
26.0 



l.S. 7 
15.2 



22.4 
10.4 



13.6 
22.3 



60.3 
72.8 



50.7 
47.3 



18.8 
218.0 
38.4 



Clay rpfractories. 
Location quo'knt. 



Concrt'te products . 
Location Quotient 



Mirrors and other glass prod- 
ucts 

Locition quotient 



2.). 1 
12.2 

17.4 



0.96 



11.34 
II. SI 

7.03 
7. Si 

(■) 



(■) 






(•) 



1.23 

LIS 



3.35 
S.i9 



7.11 

7. a 






10.0 



Glass tableware and containeri 
Locition quotient 

See footnotes at end of table. 



.49 

.61 



sa 



0.98 



4.48 
167 

2.72 
i.78 

(•) 
(•) 



".18 
.S6 

.66 
.67 

.28 
.29 

(■) 
(■) 



(•) 



(■) 



C) 



{») 



n 1.36 
1.9e 



9.42 
9.61 



"8.50 
11.97 






".43 

.61 



5.84 



(■) 



8.96 
l.SS 



16.93 
i.Sl 



8.20 
l.iO 

5.20 



10.75 
l.Si 

4.23 
.72 



1.03 
.IS 



3.32 
.57 



10.80 
l.So 



2.98 
.51 



(■) 



14.49 

2.iS 



19.79 
S.S9 



38.98 
6.67 



20.91 
S..5S 



7.57 
l.SO 






4.60 
.79 



2.16 

.S7 



(') 



1.35 



(») 












(•) 



(•) 



6.57 
J,. 87 

(■) 



(«) 






(•) 
(«) 



2.96 



1.59 

.61, 



2.57 
.S7 



3.20 
1.08 

1.63 
.56- 

.12 

.04 

.73 
.25 



2.21 
.75 



3.34 

LIS 



(•1 



(■) 
(•) 

(•) 
(') 



4.76 
1.61 






.39 
.IS 



3. 7S 
l.SS 



('1 



12 14 



6.25 
.51 



11.48 
.95 



19.25 
LB9 



20.08 
1.65 



14.43 
1.19 



34. 95 
i.SS 



26.30 

2.17 



1.42 
.11 



■ if 



20.20 
1.66 



44.61 
S.e7 



11.32 



15.53 
1.2S 



2.09 

.17 



8.84 
.7S 



8.87 

.73 



14.32 
LIS 



41.16 
S.39 



6.96 

.67 



(») 



7.63 
.6S 



22.94 
1.89 



9.03 

.74 



4.04 

.7* 



7.11 
1.29 



2 83 
.51 



7.08 
1.29 



2.82 

.51 



3.79 



11.58 
2.11 



16.24 
S.9S 



18.20 
S.Sl 



14.64 

2.66 



19.57 
S.56 



8.40 
L5S 



19.15 
S.i8 



6.30 
1.15 



.70 
.13 



I. 16 
.21 



12.02 

e.i9 



2.96 
5i 



2.85 

.62 



6.01 
1.09 



8.12 
l.iS 



8.75 
1.69 



10.88 



4.73 
■ iS 



7.69 
.71 



10.76 
.99 



9.92 
.91 



8.58 
.79 



5.67 
.52 



6.12 
.66 



2.76 
.26 



9.40 
.S6 

lOS 
.18 

5.29 

.49 

8.83 
.82 



6.03 
.55 



11.25 
1.03 



4.92 
•4-5 



17.21 
1.68 



7.31 
.67 



.tf« 



8.35 
.77 



30.23 

8.78 



8.35 
.77 



8.76 
.81 



20.22 
1.86 



(■) 
(-) 



8.08 
1.06 



5.06 
.67 



8.11 
/.07 



5.78 
.76 



5.58 
.74 



10.20 
l.Si 



4.97 
.65 



3.45 
.45 



6.76 
.8,9 



12.41 
1.64 



11.71 

1.5i 



8,31 
1.09 



3.23 

.43 



13.94 
/.S4 



3.31 
■ii 



3.35 

■ 44 



6.95 
.92 



1.18 
./tf 



13.89 
l.«S 



14.97 
; 97 



5.64 
.74 



17.92 
2.S6 



19.81 

«.6; 



3.52 



1 66 

.47 



3.76 
(.07 



3.87 
1.10 



3.07 



2 66 
.76 



1..57 
■ 45 



9.21 
2.62 



2 19 



2.31 
.66 



8,76 



6.12 

;.74 

.70 
.20 

(•1 
(■) 

.84 
.«4 

.30 
.09 



3.79 
;.08 



3.67 
I.Oi 



.82 



11.22 
3.(9 



7 56 



3.31 

■ U 



1.29 



7.82 
LOS 



12.18 
1.6/ 



18.72 
«.4S 



2.64 
.35 



1.29 
.77 



7.58 
1.00 



8.39 



10.86 

/.4« 



15.37 
2.0.3 



4.27 
.5S 



5. 8S 
.78 



4.44 
.59 



0.06 



7.99 
1.06 



6.53 



2.30 
.30 



4.31 

.57 



12.' 



7.32 
.97 



3.36 
.51 



10 77 
L6S 



8.94 
I.S6 



4.71 
.7/ 



3.62 
.55 



4.04 
.61 



2.19 
.33 



1.71 
.26 



10.93 

/.es 



.66 
.10 



.15 
.OJ 



8.19 

7. ?4 



8.91 
/.S5 



3.03 



4.97 
.75 

(-) 
(') 

.46 

.07 



1.60 

.84 



(•) 



5.76 
.S7 



2.91 

■ U 



10. .56 

4./4 



10.02 
S.9S 



5.93 
8.33 



2 72 
/.07 



3.28 
.93 



2.00 
.78 



2.58 
1.01 



.58 
.8.S 



2.53 

;.o/ 



1.24 
■49 

9.41 
3.69 

1.29 

.51 

4.48 
/.76 

6.44 
«.5» 



.54 
.21 



(■) 



2.63 
1.03 



.47 



2.26 









4.35 
L9S 



4.26 
1.88 



3.27 
/.45 



1.93 
.85 



3.14 
1.S9 






6.76 
2.99 



4.49 
/.99 



2.22 
.98 



3.83 
i.69 



2.01 
.39 






1.68 
.70 



18.07 
S.OO 



12.35 
5.46 



2.46 
1.09 



1.66 
.73 

18.98 
S.iO 



2.71 
1.20 



1.57 
.69 



1.01 



3,66 
3.62 



1.78 

/.7e 



.,58 
.57 



2.51 
8.49 



4.40 
i.S6 



(•) 



1.40 

1.39 



1.08 
;.07 



1.12 



(■) 



(•) 
(■) 

(•) 



.33 

.33 



(•) 
(■) 



.68 
.67 



3.30 

3.87 



Industrial Location and National Resources 



113 



localization for the United States, selected manufacturing industries, 1939 — Continued 


















5 a* 
II 

SOW 


n 

Si 
S- 


as 

"5 


'3 

> 


o 

1 


es 
c 

U 

x: 

a 

o 

DO 


.2 

o 


as 

•V 


■g 
c 


o 

B 

a 


1 
1 

S 

(0 

as 

< 


C9 

E 

1 

o 

i 

OS 
< 


03 

3 
o 


M 


M n I a n a , i a a i' " , 
Wyoming, Colorado, 
New Mexico, Ari- 
zona, Utah. Nevada 


a 
S 
a 

1 


c 
g 

s 

o 


sa 


a 

li 


("orrcsponding undis- 
tributed portion for 
I(»tiil manufacturing' 


1 


0.74 


2.16 

(■) 
(') 

U.IO 
■ 9i 

(•) 
(•) 

'1.87 
l.Oi 


1.70 

7.03 

i-U 

2.30 

1.S5 

.57 

1.16 
.68 


0.95 




1 61 




67 


80 


1 67 


2.07 


0.82 


0.90 


1.61 


0.88 


1.14 


0.81 


3.49 









4.01 
/.i7 

.99 
S9 


2.13 


(•) 
(■) 

.52 
S6 


4.26 
6 S6 




2.78 
/ 66 


5 1.87 

i.te 


(•) 

(•) 
(«) 


6.65 
7.S9 


(■) 




14.33 

11.57 


3.48 
4.30 


(■) 
(•) 


9.08 


25.64 


0.58 


(•) 
(■) 

(') 
(■) 

a 1. 10 
1.6i 


.63 


.84 

Sg 


.85 
1 S7 




(•) 
(•) 

.76 
.46 

1.19 
.71 


3 1.02 
.69 


2.92 
t 5i 






2.84 
S.i9 


1.58 
1.96 


1.96 
.66 


3.11 

.84 


9.27 


.28 


(•) 
(.) 

1.36 
..jO 


(■) 
(•) 

.06 
■ 04 


1.67 
79 




{•) 
(■) 

.36 
.46 






(•) 
(•) 


.36 
.11 




2.16 
1.89 


^:i 


1.59 
■ iS 


4.26 
.8/ 


13.81 


.27 








.98 
l.OS 


.83 
■ it 


.15 

.a 


(•) 


.38 
■ 46 


1.00 


.65 

■ iO 


33.19 

.16 


.82 
.71 


.21 
.16 


3.05 
.87 


.57 
■ H 


2.33 


.18 


3.36 

I Si 

(•) 
(•) 

(•) 
(•) 

(•) 
(•) 


2.79 
1.19 

>• 2. 39 
l.!6 

" 3. 13 
1.65 

10.99 
5.09 


1.12 
.86 

.53 

.*; 

.90 
.5S 

9.97 
5.«6 


.86 
.97 


1.22 
.36 

.38 
.iJ 

.32 

.09 

10.26 
t.99 

4.88 

I.il 

1.11 

.SI 

{■) 


.50 


1.21 
.61 

.19 


1.44 


.97 


1.37 


1.16 
.66 


1.96 
I S9 


.97 
/ 08 


3.58 
l.tt 


3.08 
3.60 


1.51 
1.3! 


1.03 
1.17 


6.70 
1.91 






.20 








(•) 
(•) 

(•) 
(•) 

8.35 
5.19 

5.37 
3.S4 

.03 

.01 


.07 


.07 
09 


2.59 
/ 65 


1.11 
.07 


.14 
.17 


.13 


.62 
.39 


15.23 
.«9 


.14 

■ li 


.18 
.it 


2.97 
.85 


.52 
.16 


3.25 


.35 


.24 
.15 

(■) 
(•) 


.55 

.iS 

12.17 
6.09 

11.73 
5.87 

.34 

.17 

.94 

■ 47 




1.08 
1.S6 

.72 
90 


.28 


(') 
(•) 

7.99 
S 86 


.12 


.12 
13 


.1.25 
.78 


•'.44 
.58 


.66 

.58 




6.40 
J. 88 


2.16 
.80 


7.28 


.37 


7.23 
10 79 


3.16 
1 89 


'.64 
1 39 


2.80 
5 11 


1.02 
65 


(■) 


.10 
.09 


.04 
.05 


1.06 
.30 


1.32 
.S6 


5.11 


.57 


(•) 
(■) 

.10 

.16 

W 
(•) 


.29 

.36 

(') 


6.72 

2.90 

1.74 

1.52 
.97 


22.10 
10.68 

(•) 
(■) 

'.13 
.09 


13.74 
16.76 

'.13 

S8 


4.82 

6.36 

.28 
SI 


25.13 
16.61 

.65 
■ iO 

.91 

.67 


1.55 
/.76 

(•) 
(■) 

(•) 
(•) 






2.31 
.66 

2.17 
.6* 


.36 
.IS 

.56 
■ 14 


2.93 
4.10 


.81 
















1.61 

i.lS 

(') 
(•) 


i»1.94 

l.Ot 

.11 
.05 


.28 
.16 

.37 


.21 


.12 

.11 


.04 
.05 


.31 


(•) 


.30 
.S3 


.31 

.f7 


(•) 


3.40 
.97 


.85 
■ 09 


9.16 


.48 


»6.H 
11. ts 

(') 
(•) 

.55 

.n 

4.17 
S.Si 


(•) 

IM.27 
.67 

'1.69 
.9i 

'«1.07 
.16 










.16 
.08 

.40 

■ !0 

.09 
.05 

(•) 
(■) 






.15 
.09 

.91 
■ 64 

3.53 


.04 

.oe 

'.22 
16 


.08 
10 


(•) 
(■) 

.74 
8i 


.15 
.09 

.86 
53 


(■) 
(■) 

(•) 
(•) 

(■) 
{•) 

"2.60 
3.51 


.25 

.11 

.32 

.18 


C) 
.34 


6.24 
1.79 

6. SO 
1.86 


4.65 
.66 

.53 

.15 


7.02 
3.48 


.40 
















.32 
.19 

4.03 

«.37 

(•) 
(•) 


.05 
.05 

7.52 
7.9« 

.54 
.57 


.22 

.06 

(•) 
(•) 


.14 

.09 

.16 

.10 

(•) 
(■) 


.13 

.19 

.18 


2.17 

1.71 

(•) 

w 

.78 
.98 


.29 


1.24 


n. 17 

.ir 

6.71 
8.18 


2.10 


1.17 
.73 


.21 
.18 


4.95 
1.41 


2.64 
.86 


7.33 


.34 


(■) 


(■) 


3.61 
4.01 


25.99 
16.14 


(■) 


(■) 


11.82 
3.39 


1.35 
.■09 


15.43 


.55 






(•) 


2.27 
1.05 


.96 
.66 


(•) 






(•1 
(■) 




(■) 


.06 

■ 04 




".11 
.31 




.18 
.11 


(■) 
(•) 


.06 
.05 




2.49 
.71 


3.90 
.33 


11. y- 


.33 




« 5. 39 
14.97 

(•) 
C«) 

1.24 


.94 

(■) 
(•) 

1.41 

8S 


1.90 
f.OO 


1.98 
.58 

{•) 
(•) 

(•) 
(•) 




(') 
(■) 




..62 
.7« 

(■) 
(') 

.73 
.91 


.80 
.48 

(») 

(a) 








(■) 
(•) 


(■) 
(•) 




.04 
.05 


1.45 
■ H 

.29 
.08 


2.89 
.30 

280 

.It 


9.48 
23.00 


.36 












(•) 
(•) 

(•) 
(■) 








.60 




























.70 
S6 


(') 

(•) 
(«) 


2.18 
LSI 


(■) 






.10 
.06 


(•) 


.04 

■ Oi 


.03 
■ 04 


.42 
.It 


.06 


8.87 


.44 








1.27 
.IS 








(■) 
(■) 








.10 
.06 


'S.fiO 
.75 


.31 

.S7 


.06 
.07 


1.53 

.u 


6.28 
.73 


8.55 


.42 




















•1.40 
t.l9 


12.32 
I.IS 


4.07 
t.S9 


1.78 
1.87 


4.92 
US 


2.76 
1.71 


3.39 

1.70 


.55 
.81 


1.46 

i.es 


3.01 

;.«o 


4.43 
t.l4 


2.40 
f.9S 


1.36 
1.51 


4.93 
3.06 


3 3.54 

i.or 


.82 
.7* 


.37 
■ 46 


2.23 
■ 64 


1.02 
.66 


l.s.i 


.29 








3.15 
l.iS 

4.80 
t.tl 


2.87 

;.fis 


2.64 
1.67 

1.36 


1.31 
..18 


h 

.94 

.68 


3.58 
1.79 

1.66 


3.79 
6.66 


11.62 
li.6S 

.98 
l.iS 


1.95 
LIT 


1.92 
.93 

1.85 
.89 






(•) 
(■) 

3.38 

t.io 


38 1.80 

t.47 

33 1. 67 
t.ll 


(■) 
(■) 

2.26 
1.98 


.62 
.77 


2.60 
■ 7i 

6.33 
I.Sl 


2.62 
.08 

.76 
■ 49 


34.62 
1.56 


.60 










"2.06 
t.90 


1' 1.19 
3. 31 


1.31 
1.46 


.22 


'A 


1 1.74 
.Si 


2.73 

i.ei 


1.49 

;.«7 


2.97 
.87 






.14 
.tl 


..W 
.73 


1.02 
.6/ 


(•) 


(') 


(•) 


.69 
■ iS 


(•) 


.31 


.27 
.33 


3.01 
.86 


1.48 
.19 


7. SI 


.31 




Z37 
1.10 




13.79 

li.et 




f') 








(■) 


(•) 


■3 1.72 
4.78 




(•) 
(•) 




(•) 




3.30 
.96 


2.47 

.17 


14.99 


.47 








114 



National Resources Planning Board 



Table 2. — Distribution oj wage earners among States or Stale groups, and coefficient of 



Industry (classified according 
to trie Census for 1939) 



Total manufactoring 

Group 14— Iron and Steel 



Blast furnace products . 
Location quotient 



Steel works and rolling mills. , 
Location Quotient 



fJray-iron. semi-steel castings. 
Location quotient 



^[alleable iron castings.. 
Location guofieytt 



Steel castings 

Location quotient. 



Forgings, iron and steel. . 
Location quotient 



Fabricated structural steel . 
Location quotient.. 



Stamped and pressed metal. 
Location quotient 



Tin cans and other tinware . 
Location quotient 



Wire drawn from purchased 

rods 

Location quotient 



Power boilers 

Location quotient. 



Steam fittings . - . 
Location quotient. 



Stoves, ranges, and water heat- 
ers 

Location quotient... 



Screw machine prodticts. 
Location quotient 



Bolts, nuts, washers, etc. 
Location quotient 



Tools (exc. ed:^ed tools) . 
Location quotient 



Cutlery and edged tools.. 
Location quotient 



Hardware, not elsewhere classi- 
fied 

Location quotient... 



GROnp 15— NONFERROUS 

Metals 

Sheet metal work, not else- 
where classified. _ 

Location quotient 



Alloying (except aluminum). 
Location quotient 



Lighting fixtures. 
Location quotient. 



Clocks, watches, etc.. 
Location quotient 



Jewelry 

Location quotient. 



7. 887. 



10.9 



15.3 



n.96 



18.7 



38.8 



20.5 
17.9 



11.4 



Nonferrous metal foundries.. 
Location quotient 

Groups 16 and 17 — F.lectei- 
CAL Equipment; Machinery 



Generating, distributing, and , 

industrial appliances 70.4 

Location quotient ' 



.18 

.19 



(■) 



(•) 
(■) 



(•) 
(•) 



(•) 
(•) 



(') 
C) 



(") 



(•) 
(•) 



.73 
.76 



.96 
1.00 



(•) 
(') 



M a 

is 



(■) 
(•) 



(•) 
(■) 



.91 
.93 

(•) 
{») 



(•) 
C) 



(•) 
(•) 



(") 
(•) 



(«) 
(■) 



(«) 
(") 



1. 5S 
1.S9 



'^ 1.65 
S.S2 



(•) 
(•) 



(•) 
(•) 



".23 

.Si 



(•) 
(■) 



{•) 
(•) 



.70 



(•) 



7.03 

i.eo 



2.05 
.35 



4.22 

.71 



1.30 

.11 



16.18 
2.77 



1.95 
.33 



8.29 
l.il 



4.77 



7.93 
1.36 



9.5! 
1.63 



15.26 
S.61 



3.04 
.51 



3.78 
.66 



1.75 
.30 



2.87 



15.43 



16.20 

1.77 



3.74 

.64 



11.66 
t.OO 



1.35 



(») 
(•) 



(•) 
(•) 



1.58 
1.17 



(•) 
(•) 



(■) 
(•) 

(») 
C») 

.60 



(•) 
(■) 

6.16 

i.se 

2.92 
S.16 

.26 
.19 

5.24 

3.88 



.40 
.30 

2.53 

1.S7 

(') 
(■) 

(•) 
(■) 

21.94 
16. S5 

.39 

.29 



(■) 



(•) 
(') 

2.75 
.93 

3.36 

l.li 

(') 
C) 

3.32 

LIS 

..56 
.19 

7.05 

e.ss 

•(■> 

K") 



6.46 
1.18 



1.13 

.38 



5.94 
2.01 



15.15 
5.11 



14.66 
i.95 



21.07 
7. IS 



34. 12 
11.53 



.90 
.30 



42.67 
li-iS 



5.60 
1.89 



36.68 
IS. 39 



C) 
(») 



3.96 
1.34 



4.43 



6.13 
.50 



4.49 
.37 



6.62 
.55 



9.29 
.77 



15.68 

1.B9 



11.21 
.9S 



11.07 
.91 



4.93 
.41 



3.45 

.S8 



4.17 
.34 



5.47 
■ 45 



2.76 
.SS 



13.68 
1.13 



21.11 
1.74 



6.99 
.58 



8.34 
.69 



12.66 
1.04 



21.44 

J. 77 



7.51 



22.88 
1.88 



10.73 



17.30 
1.43 






.34 



4.80 
.87 



4.05 
.74 



1.03 
.19 



3.14 
.57 



6.25 
1.14 



9.92 
1.80 



11.83 
S.15 



2.50 
.45 



1.55 
.S8 



.75 
.14 



3.83 
.70 



5.17 



1.78 



1.72 
.31 



6.79 
1.S3 



6.77 
1.S3 



5.77 
7.05 



1.91 
.35 



13.48 
S.45 



5.12 
.93 



29.00 

s.er 



36.45 
3.35 



8.28 
.7fi 



9.19 
■ 84 



12.77 
/.I7 



22.56 
S.07 



5.29 
.49 



13.87 
/.«7 



21.05 
1.9S 



11.25 

;.os 



7.16 



6.13 
.56 



16.13 
/.4S 



8.56 
.79 



3.88 
.S6 



.50 



7.79 
.71 



.43 



5.97 
.55 



2.71 
.S5 



11.06 
J.O* 



20.14 
J.«5 



15. C 
l.S 



1.37 



6.61 
.«7 



16.05 
S.ll 



11.28 
;.i9 



16.85 
S.SS 



19.75 
2.60 



35.08 
4.6« 



12.47 
/.64 



.77 



11.74 
/.55 



3.99 
.53 



13.45 
;.77 



1.02 
.13 



2.24 
.30 



16.89 
f.fS 



11.51 
1.51 ' 



3.62 



8.22 
S.34 



9.85 
2.«0 



8.41 



10.95 
3.11 



6.70 
;.90 



6.84 
(.94 



4.05 
1.15 



3.98 



1.34 

.38 



7.24 
2.06 



.91 
.26 



2.63 
.75 



2.26 

.64 



3.52 
1.00 



.64 

.18 



1.66 
.47 



1.66 
.47 



14.05 
3.99 



(») 
(■) 



2.71 
.77 



5.66 
1.61 



7.56 



7.70 
l.OS 



6.80 
.90 



1.16 



17.88 
2.37 



17. 95 
2. .57 



17.04 
S.SS 



5.64 
.75 



10.82 
1.4s 



23.33 

3.09 



12.17 
1.61 



.90 



40.40 

5.34 



12.96 
1.71 



17.83 
2.36 



11.69 
;. .55 



12.11 
1.60 



2.83 

.37 



15.90 
S.IO 



10.93 

/.45 



5.71 
.76 



19.18 
S.54 



27.13 
3.59 



12.74 
1.69 



4.14 
.55 



6.62 



4.45 

.67 

2.67 
.40 

12.93 
1.95 

16.40 
2.48 

4.74 
.72 

10.00 
1.51 

4.25 
.64 

3.52 

.53 

.79 
.11 



8.20 
/.24 



2.11 
.SS 



10.81 
/.6S 

12.74 
1.9S 

6.31 
.95 

6.49 
.98 

.73 

.11 



12.33 
(.86 



4.04 
.61 



7.78 
/./8 



3.80 
.57 



(•) 
(•) 



6.00 
.91 



3.87 
.58 



(■) 
(•) 

3.32 
1..30 

7.25 
S.84 



8.51 
3.34 



3.48 
1.36 



.85 
.33 



(■) 
(•) 



3.46 
1.36 



3.41 
7.34 



4.44 
7.74 



1.56 
.61 



1.65 
.65 



1.58 
.62 



1.38 
.54 



6.97 
2.73 



2.69 
7.05 



1.30 
.57 



(■) 
(■) 



4.27 
7.67 



6.07 
S.SS 



(•) 
(') 



2.81 
7.75 



(') 
(■) 



3.27 
7.45 



(•) 
(•) 



2.07 



3.12 
7.38 



2.11 
.93 



(») 



6.36 
2.87 



1.16 

.57 



3,96 
7.75 



(•) 
C) 



1.46 
.65 



4.62 
2.04 



1.30 
.58 



3.63 
7.67 



.41 

.78 



2.38 
7.05 



4.85 
2.75 



8.48 
3.75 



1.01 



(>) 
(") 

(■) 
(•) 

1.15 
7.74 

(■) 
(«) 

(•) 
(') 



1.98 
7.96 



1.57 
7.55 

(•) 
(•) 



1.09 
7.0s 

.21 
.27 

1.03 
7.02 

1.51 
7.50 

(■) 
(■) 



2.94 
2.97 

(•) 
(■) 

.05 
.OS 



2.00 
7.98 



.84 
.83 



See footnotes at end of table. 



Indusfrial Location and National Resources 



115 



localization j or the United States, selected manujacturing industries, 1939 — Continued 



^,« 




.S'o 


3-S 




^ n 




Is 


X) 






<^;s 


M 












RS 


s 




,r:^ 


c 






»? 



3QM 



0.74 



». 52 



(•) 



•2.39 
S.7S 

(■) 
(*) 

(■) 
(•) 



1.08 
J.4« 



" 1. 16 
i.Sl 



(■) 



(■) 



1.79 

(•) 
(•) 



(•) 
(■) 

(•) 
(•) 






2.16 



(■) 
(■) 



1M.50 
I.S7 



i'.90 

■ i7 



(•) 



(■) 
(■) 



n 1. 90 
1.00 



8.21 
S.«0 



12.35 
«.7« 



(") 
(•) 

l».75 
.S9 

(.) 
(») 



(■) 
(■) 



(•) 






(■) 



(•) 



'2.W 
LIS 



2.62 
i.tl 



1.28 
.IS 



(') 

(•1 
(•) 

1.05 



(■) 
(■) 

2.09 
I.IS 

(•) 
(•) 






(■) 



.67 
.S9 

(•) 



0.96 



(•I 



.3.52 

S.71 









1.12 

1.18 



3.14 
S.Sl 



2.98 
S.U 



4.79 
S.Oi 






(•) 



1.04 
1.09 

(•) 
(•) 



(•) 



3.43 



.82 
■ H 

(•) 









(•) 
(•) 






.19 
.06 



(•) 



(■) 
(■) 



1.61 



.25 

.le 

(•) 
(•) 



(■) 
(•) 

(■) 
(■) 

(•) 
(•) 



.15 



(•) 
(■) 



2.00 



(-) 
(•) 

1.00 
.50 



(•) 
(■) 



(■) 



1.68 



1.07 

.5i 



(•) 






.52 

.le 



(■) 



0.67 



(•) 



.25 
.37 

(•) 
(■) 

.49 

.73 






(») 



(•) 
(•) 



0.80 



(»> 
(") 

1.35 
1.69 

.56 
.70 



(•) 



.85 
1.06 






CI 



1.13 
l.J,l 



(•) 



.48 
.00 



.63 
.79 



(■) 



(■) 
(•) 

.60 

.76 



.26 
.SS 



(■) 



(■) 



(■) 
(•) 

(■) 
CJ 

2.00 
l.SO 



4.37 

S.Ui 






9,61 
5.75 



C") 

(•) 
(■) 



(■) 
(") 



11.. 38 
5.50 



3.66 

;.77 



(•) 






'2.77 
1.S7 



(■) 



3 2.22 
1.50 



3.32 
1.60 



(•) 
(•) 

(*) 
(■) 



(■) 
(■) 



(») 



(■) 



(•) 
(■) 



0.82 



(■) 
(•) 



C) 






"1.77 

i.9e 



(•) 



"3.20 
8.89 



(■) 



(■) 
(•) 

(•) 
(•) 



(") 
(•) 

(■) 
(•) 

(■) 
(•) 

H.32 



.05 
.06 



0.90 



(.1 



1.96 

S.18 



.59 
.66 



.99 
1.10 









(■) 



(■) 









(■) 
(•) 



3.86 
l.iO 



.34 

.11 



3.15 
1.96 



("1 



3.46 
t.15 



■ M ® a: 

05 B 

•^ o te a" 

= ^S c 

■A 



(■) 

(•) 
(•) 

» 1. 15 

C) 

(•) 

(") 
(») 

(■) 
(•) 



.18 
.// 

(>) 
(•) 

(•> 
(■) 

.13 
.08 



1.77 
1.10 

(•) 
(■) 

(■) 

(■) 



.49 



2.05 
J.*7 



/.s; 















(•) 









"1.60 
I. OS 

(•) 
(■) 

{•) 
{■) 



».55 
.77 



"1.23 
1.68 



(■) 



f"1 






.42 
.37 



.12 



1.18 

;.04 



.88 



.55 

(») 
(■) 

(") 

.09 
.0« 

(•) 
(") 



(•) 



1.31 
I.IS 

(■) 
(•) 

(•) 
(■) 



.36 
..IS 



.76 

.er 



0.81 



.28 
.35 



.98 









(•) 



.51 
.63 

(■> 
(■) 



.63 






(") 



(■) 



1.94 

1.40 

(•) 
(•) 

(■) 
(•) 



.28 
.35 



.41 



1.36 
.39 



4.12 
?./8 






3.97 



1.54 

■ 47 



6.51 

;.«7 



2.93 
.84 



8.54 

t.45 



1.26 
.S« 



6.50 

1.67 



2.07 
.59 



!.40 
.40 



.16 
.05 



8.49 
«.4S 



3.23 
.93 

(■) 
(•) 

3.47 



7.03 
t.Ol 



2.11 
.(.'0 



8.45 
.09 

3.51 
.18 

.69 
.5« 

8.95 

.44 

8.28 
.48 

1.73 

.;.5 

1.31 
.!5 

.04 
.05 

4.57 
.SS 



5.11 

.45 



2.38 
.SO 



9. ,55 
l.S! 



5.19 
.57 



1.85 
.16 



4.92 

.38 



1.72 

.;3 



.60 
.10 



3.30 

.«9 



.65 
.07 



2.95 
./S 



1.49 
.17 



2.32 
.tl 



.40 
.04 



n c 

O =J g 



14.22 



19.17 
1.94 
20.22 
17. 15 
11.40 
5 16 
12.75 



7. <! 
5.20 
9. 10 
11.65 
13.04 

13.15 



2.98 
11.52 
8.94 



10.83 



0.49 
.51 
.26 
.39 
.42 
..38 
.27 
.33 



13.91 


.40 


11.36 


.33 


7.96 


.35 


7.82 


.45 



.37 
.48 
.40 
.32 

.48 



.27 
.44 
.40 
.63 
.51 
.25 



.36 



116 



National Resources Planning Board 



Table 2. — Distribution of wage earners arnong States or State groups, ayid coefficient of 



Industry (classified according 
to the Census for 1939) 



Total manufacturing 

Groups 16 and 17— Electri- 
CAi Equipment; MAcmNERT 
—Continued. 



Refrigerators 

Location quotient. 



Radios, tubes, phonographs. 
Location quotient,. 



7,887.0 



35.2 
43.5 



Batteries, storage and primary . 
Location quotient 



Wiring: devices and supplies.. 
Location quotient 



Automotive electric equipment. 
Location quotient 



Electric lamps, electric appli- 
ances, and other products, 
not elsewhere classified _. 

Location quotient _ . 



Metal working machinery.. 
Location quotient _. 



Mechanical power transmission 

equipment 

Location quotient.. 



Construction machinery. 
Locaiion quotient 



Machine shop products. 
Location quotient 



Machine tools 

Location quotients. 



Machine tool accessories.. 
Location quotient 



Agricultural machinery (ex- 
cluding tractors) 

Location quotient 



Food-products machinery. 
Location quotient 



Textile machinery.. 
Location quotient 



3 a 



ax:" 
3 



15.0 



17.5 



35. 5 



30.: 



17.3 



60.7 
36.6 



25.2 



14.0 



Oil-Seld machinery,. 
Location quotient 



Pumping equipment- 
Location quotient 



Intemal-combustion machin- 
ery., 

Loca*ion quotieiit 



Industrial machinery,. 
Location quotient 



Office and store machinery.. 
Location quotient 



Group 18— Automopiles and 
Equipment 



Motor vehicles and bodies.. 
Location quotient 



Group 19— Transportation 
Equipment (Except Auto- 
mobiles) 



Car and car equipment.. 
Location quotients. 



Aircraft parts 

Location quotient. 



Shipbuilding: and repairing.. 
Location quotient... 



12.5 



0.96 



{■) 

(■■) 

.24 

.SS 



(•) 



10.32 
10. 7S 



as 

sa 



0.98 



(•) 
(■) 



(•) 
(•) 



{•) 
(•) 



(•) 



(■) 
(•) 

(•) 
C") 

.10 
.10 

i« 4. 70 
17.il 

(■) 
(■) 



(•) 
(•) 

(•) 
(•) 

"4.84 
6.8t 



21.9 



397.5 



(•) 
(■) 



(■) 
(') 



3.57 
S.7« 



(•) 



(■) 
(■) 



(•) 



5.84 



.12 
.01 



6.49 
1.11 



5.25 
.90 



5.84 
1.00 



9.20 
1.58 



2.23 
.SS 



3.81 

.85 

(•) 
(•) 

4.78 
.81 

9.74 
1.67 

12.87 

t.to 



.44 

.08 

2.72 

37.75 
6.i6 



2.96 
.61 



1.35 



(•) 
(■) 

(■* 
(•) 

(■) 
(•) 

(•) 
(■) 



(■) 



(■) 
(•) 



1.33 



8.90 
6.0 



2.24 

1.66 



7.78 
6.76 



6.63 
l.U 



.93 

.18 



(■) 
(•) 

(■) 
(■) 

10.85 
1.86 



(•) 
(•) 

1.60 
■ Si 

4.58 
1.6S 

20.10 
6,79 

(•) 
(•) 



9.62 
S.IS 



6.91 
I. S3 



28.70 
9.70 



2.07 
.70 



12.37 
4.18 



7.79 

i.es 



(•) 
(■) 



1.25 

■ as 



.so 



.30 
.SI 

f) 
(•) 



.12 
.09 



1.14 
.89 



1.82 
.61 



.83 



30.47 
10.19 



.22 

.07 






12.14 



4.99 
■ it 



11.20 
.9S 



6.22 
.61 



24.39 
S.OI 



9.32 

.77 



6.29 
.SS 



12.21 

1.01 



7.19 
.S9 

3.10 

.se 

7.97 
.66 

6.48 
■ il 

5.76 
.i7 



7.00 
.68 



18.66 
l.Si 



1.52 

.IS 



11.10 
S.7S 



3.37 

l.li 



11.15 
.9S 

12.40 
l.OS 

29.68 

s.u 



4.04 
.33 



7.36 
.61 



12.87 
1.06 



10.92 
.90 



5.50 



1.66 
.SO 



27.13 
4.95 



10.96 
1.99 



4.58 
.SS 



1.54 
.S8 



18.04 
S.S8 



9.10 
1.65 



5.30 



2.35 
.43 



3.49 
.63 



1.34 
.Si 



2.98 
.Si 



.14 



2.07 
.38 



2.72 



12.97 
S.S6 



(») 
(•) 



15.45 
1.81 



2.31 

■ it 



2.26 
■ H 



1.13 

.SI 



9.45 

1.71 



18.46 
S.S6 1 



10.88 



11.44 
l.OS 



17.61 
1.6S 



11.60 
;.07 



10.46 
.96 



2.13 
.SO 



8.36 

.77 



10.55 
.97 



4.79 

■ u 



14.84 
1.S6 



3.85 
.35 



6.69 
.SS 



2.01 
.18 



.40 



24.95 
S.S9 



7.59 
.70 

12.42 

l.li 

.33 

.03 



3.42 

.SI 



19.24 
/.77 



.Si 



9.83 
.90 



.59 



27.96 
3.68 



4.45 
.69 



22.15 
i.9S 



5.33 
.70 



27.89 
S.67 



27.03 
S.S6 



29.83 
3.9S 



18.52 
S.U 



26.27 
S.i6 



12.09 
1.69 



29.51 
S.«9 



17.26 

«.?7 



5.41 
.71 



15.01 
/.98 



(•) 



6.84 
.90 



13.38 

/.76 



13.90 
1.83 



10.33 



16.89 
S.S3 



3.61 
.48 



1.55 
.«0 



1.01 

.IS 



3.52 



17.23 
4.89 

6.65 
/.89 

7.49 
S.13 

2.17 
.6S 

35.70 
iO.;4 



11.61 
S.SO 



4.67 
1.30 



5.69 



3.12 



12.73 

3.6S 



2.66 

.76 



(•) 
(•) 

4.88 
1.39 



(') 
{■) 

2.43 

.69 

(■) 
(■) 



6.73 
1.91 



10.24 
«.9/ 

(•) 
(■) 

.17 

.06 



7.66 



2.32 

.s; 



23 80 
3.16 



5.39 

.7; 



14.80 
1.96 



2.23 
.«9 



14.68 
i.94 



12.29 
1.6S 



5.59 
.74 

12.39 
1.6i 

9.36 

/.«4 

7.09 
.94 

11.12 

A 47 



47.72 
6.3/ 



16.49 
1.18 



1.97 
.«6 



.68 
:09 



11.34 
/.SO 



5.09 



8.27 
J. 09 



4.75 
.63 



1.85 

.«4 



22.61 
S.99 



.15 
.0* 



a 


a 
1 


s 


o 

a 

a 


1 


6.62 


2.65 


2.26 


1.01 


aaf 


19.40 
t.9S 


1.27 
.50 


2.11 
.9S 


4.96 

4.9; 


n 


2.02 
.5/ 




(•) 


.26 

.SS 


(•) 


.26 
■ Oi 


8.89 
S.i9 


.84 
.S7 


1.81 
/.79 


3.31 
3.99 


(■) 


(•) 
(•) 


2.06 
.91 


[:i 




4.72 
.71 


1.18 
.i6 


.64 

.Si 


1:5 




2.74 
.4' 


2.11 
.8S 


2.42 
1.07 


.04 
.Oi 


.03 
.04 


5.63 
.84 


l.Ofl 

.H 


.73 


1.69 
1.67 


(:] 


4.50 
.68 


1.89 

.74 


.72 


(•) 
(■) 


[:] 


8.03 


22.88 
8.97 




3.43 
S.40 


3.84 
4.6S 


14.80 
S.U 


3.06 
l.SO 


2.14 
.96 


.72 
.7i 


1.27 


7.24 
/.09 


6.02 
1.36 


(•) 


(•) 


(■) 


26.94 
S.9« 


2.40 
.9i 


.53 
.S3 


.33 
.SS 


.26 

.31 


2.20 

.33 


7.98 
S.IS 


.42 

./9 


2.34 

S.SS 


2.84 
S.4S 


4.63 
.70 


10.61 
4.16 


1.79 
.79 


3.00 

S.97 


1.66 
S.OO 


(■) 










CI 










(■) 


3.14 
1.13 


.67 
.SO 

2.33 

1.03 






(*) 






5.95 
.90 


3.16 
3.1s 


7.43 
8. 95 


9.70 
i.47 


35.06 
13.76 


5.22 
«.SJ 


1.63 
1.61 


(•) 


5.72 
.86 


2.13 

■ Si 


1.07 
.47 


1.28 

1.17 


.64 

.77 


11.68 
1.76 


.32 

.13 


.28 
.IS 


(•) 
(•) 




63.87 
9.65 


3.60 

1.41 


1.76 
.78 


.29 

.S9 


.03 

.04 


(■) 
(■1 


1.27 
.50 


7.62 
S.S7 


.89 
.88 


.22 


1.98 




.90 
■40 






.30 






.53 

.08 


.60 

■ Si 


(■) 


.12 

.IS 


(■) 



See footnotes at end of table. 



Industrial Location and National Resources 

localization for the United States, selected tnanufacluring industries, 1939 — Continued 



117 



« ~ 


. 




S-0 


^i 

Xi 
aS 




oZ 


!^S 


es - 




a5s 

o S 


Is 


^ a as 


Z 


a" 



0.74 



(•) 



C) 



(■) 









(•) 



".27 
■ iO 



".77 
1.08 

(•) 
(•) 



4.02 
S.iS 

(') 
<•) 



(') 
(') 






(') 



1.74 
t.So 



2.16 , 1.70 



10.31 
.16 



(•) 

w 

(') 
(■) 

{•> 
(■) 



1.37 
.18 






(■) 
(•) 

(•) 
(•) 

'2.07 

(•) 
(») 

(") 
(•) 



5.23 

S.iS 

(■) 
(•) 



1.91 
/.Ol 

(') 
(•) 



1.44 

.ei 



10.46 
■ Si 



1.00 1° IS. 98 



9.00 
<.»7 






(•) 



(•) 
(■) 



.24 
■ H 



0.95 



W 



C) 



1.70 
1.79 



1.61 



(■) 



CI 
(■) 



.49 



■ 6i 



.23 



■ ii 

(■) 
(■) 



2.20 



2.37 
t.i9 



(•1 
(•) 






1.12 
.33 

(■) 
(•) 

1.68 
■ 49 



12.51 

r.js 



(•) 
(•) 






(■) 
(•) 



(■) 



(") 
(') 

.18 
.// 



2.17 
1.3S 



(■) 



2.00 



.77 
.39 



0.67 



(•) 
(•) 

(•) 
(•) 



(•) 
(•) 

.16 

.«4 






(■) 
(•) 

.80 
■40 



1.30 
.CS 

(■) 
(•) 

.92 

■4S 



(■) 



(•) 



.09 
■ OS 



(•) 
(■) 



.12 
.03 



(•) 
(•) 






(■) 



.72 

.se 



.16 

.14 



.03 
.04 

(■) 
(•) 



(•) 



(■) 
(•) 

(■) 
(•) 

.52 
.65 

(•) 
(■) 



1.67 



(•) 
(•) 



(■) 






C) 
C) 



1.47 
1.84 

(■) 
(■) 

.05 

.oe 

1.47 
1.8i 

.24 
.30 

(■) 
(•) 

(•) 
(•) 

(■) 
(■) 



.42 

.SI 



(•) 



(') 



(•) 
(■) 



(•) 
(•) 



2.20 
S.tS 



(') 
(■) 

.79 

■ 47 

.58 
.-55 



(•) 
(•) 

1.12 
.87 

(•) 
(•) 

.11 
.07 

(■) 
(■) 

(■) 
(■) 



B 



0.82 



(■) 
(•) 



(■) 



. 16 (•) 
.08 (•) 



C) 



■eii -.5 
Cj.S! . 
■ te.5 a 

o >>£ c 
2^2 S 



(■) 



(■) 

C") 



(•) 



(•) 



(•) 
(•) 



(•) 



.26 



(•) 
(') 

(•) 
(•) 



(•) 
(*) 



(•) 



{•) 
(•) 

{•) 
(■) 

.35 
■ 43 



(■) 



9.70 
II. S3 



1.42 
1.73 



.17 
.SI 



2.84 
I.ST 



(') 



".16 
■ 44 

(•) 
(•) 



.50 

.S6 



(•) 
(•) 

(•) 
(') 

.83 
.9S 



(■) 
(•) 



.38 
.4i 



1.61 



.86 
.S3 



(■) 



2.43 
1.61 



(•) 



(*) 



(■) 
(■) 






.34 
.SI 



1.11 
.ft9 



(») 
(•) 

.32 
.10 

.24 
.15 



(•) 
(') 

(') 
(•) 



.10 



.03 
.03 



(■) 



{■) 
(■) 



(■) 
(•) 



I. 5fi 
.64 



47.93 

M.77 



1.22 

.76 



.70 

■ 43 



1.84 
t.04 



.33 

.«0 



.21 
.13 



2.07 



(•) 
(■) 

(■) 
(•) 

(•) 
(•) 



(■) 



"2.66 
3.64 



(') 



(•) 
(•) 



.08 

(') 
(•) 






1.82 
1.60 



.04 
.04 

,19 

.17 

.35 
.31 



(-) 
(•) 



1.57 

(•) 
(•) 



.09 
.08 



2.38 
t.09 



Z23 
i.M 



0.81 



.10 
.IS 

(') 
(•) 

.11 
.14 



.04 

(■) 
(•) 



.84 
l.Oi 



.67 
.8S 



(•) 
(•) 

(■) 
(•) 

.56 



(■) 



.48 



3.49 



1.99 

.67 

1.42 

■ 41 

3.63 
1.04 

.84 
.Si 

(') 
(•) 



1.70 
.49 



2.03 
.68 



.64 

.;« 

2.67 

.77 

4.38 

i.se 

(') 
(•) 

.79 
.S3 

1.04 
.SO 

4.21 
l.il 



17.26 
4.95 

7.18 
*.0S 



2.58 
.74 

5.08 
1.46 

1.76 

.60 



1.55 

.44 



7.16 
«.(» 

32.97 
9.4^ 

5.95 
1.70 



■a;:; 
s ^ 



1.18 
./4 



2.13 

.;.5 



7.18 



1.70 
.IS 



7.23 
.94 



.9S 

.06 



1.89 
.IS 



l.Sfi 
./f 



3.18 

.18 



1.79 
.70 



1.29 

.;o 



2.61 



6.26 



5.57 
■ 64 



.19 
.0* 



11.12 

.4* 



8.55 
.67 



1.02 



-.2 M 



10.93 



7.71 

1671 

16. IS 

.41 



10.90 
8 33 
9.19 

11.53 



17,08 
12,61 
11.21 

10 09 



10 37 



12,02 



8.92 



25.47 



12.79 
8.45 



0.51 
.42 
.43 
.38 
.52 

.49 
.36 

.45 
.52 
.23 
.51 
.45 
.59 
.38 
.66 
.74 
.32 

.45 
.20 
.59 

.62 



.42 
.58 
.46 



118 



National Resources Planning Board 













Table 2. — Distributinn of 


wa?e eo?'ners 


among States 


or State groups, and coefficient of 


Industry (classified according 






> 

tl 


% 


■c 








.2 


















to the Census for 1939) 


5*g 




Eg 


3 




o 


^ 


S 


<fl 










G 




OS 










































•3=3 




ta 






£ 


>< 


(-9 


>i 






tfl 


& 


g 


3 


S 






13 


s 






o 
.a 
« 


a 

E 


z 




a 

o 

Ph 


o 

o 


.2 
a 


o 

a 


■g 

i 




1 


i 


CO 

1 


Total manufacturing 


7,887.0 


0.96 


0.98 


6.84 


1.35 


2.96 


12.14 


5.50 


30.88 


7.59 


3.52 


7.56 


6.62 


2.55 


2.26 


l.OI 


0.83 


Group 20— Miscellaneous 




































Furs and fur poods 


18.2 






.57 




f) 


74.96 


9.49 


3.29 


.36 


.08 


2.83 


.89 


.61 


.50 


.98 


.25 


Location quotient 








./O 




(•) 


6.17 


t.7S 


.SO 


.OS 


.01 


.37 


.13 


.u 


.it 


.97 


..90 


Mattresses and springs. 


18.3 


.35 


15 .19 


4.61 


.47 


1.22 


11.02 


7.62 


5.44 


3.88 


2.03 


12.68 


2.22 


6.41 


3.93 


2.31 


.17 






.se 


.*7 


.79 


.se 


■ 4! 


.91 


1.39 


.50 


.SI 


.S8 


1.66 


.34 
4.45 


S.Sl 


1.74 


2. to 


.10 




15.1 






7.80 


(■) 


12.64 


12.85 


7.71 


14.68 


15.41 


3.09 


13.36 


(■) 






Location quotient 








1.S5 


(•) 


lf7 


1.06 


/..jO 


I.SS 


i.OS 


.88 


1.77 


.67 


(») 


(•) 



















Source: Based on Census of Manufactures, 1939. 

*States included in this undistributed group are indicated for each industry by 
footnotes to the respective columns for States or groups of States (see footnotes a 
and 1-34). Note that when State data are undistributed for a given industry they 
are so classified for total manufacturing. 

•*The coefficient of localization is the sum, divided by 100, of either the positive 
or the negative differences between the percentages for the indicated industry and for 
all manufacturing. Note that the maximum error of the coetlicient w hich may arise 
from the nondisclosure of industry data for States by the census is always less than 
either the "undistributed for indicated industry" or the "corresponding undistributed 
portion for tola] manufacturing" percentages, divided by IGO. listed in the 2 preceding 
columns. 

Localization of luanufacturing is a deviation of a 
I^articiilar industry from the locational pattern of the 
total of manufacture and represents to that extent 
reduced locational association between that particular 
industry and manufacturing in general; therefore, the 
degree of positive association of any industry with total 
manufacture can be measured as unity minus the co- 
efKcient of localization. 

It is impoi'tant to notice, moreover, in what areas 
industries locate in relation to other industries or 
markets. Are they found near their raw materials or 
their own immediate markets; or are they distributed 
parallel with the general population? 

The answer can be found in the "coefficient of geo- 
graphic association," an objective measure designed to 
show whether an industry is linked geographically 
with some other industry. This coefficient is compiled 
by methods analogous to those employed for the coeffi- 
cient of localization, but instead of adding the plus 
differences between the State percentages of the total 
workers occupied in the given industry, and the cor- 
responding percentages for manufacture generally, the 
differences totalled are those between the State per- 
centages in the given industry and in the geograph- 
ically associated industry. This total of plus differ- 
ences will vary from zero to one, but ascending values 
will represent less and less geographic linkage. To 
avoid confusion, therefore, the coefficient is formulated 
as the total of the positive differences subtracted from 
unity. 

The picture of a procession of geographically asso- 
ciated processes may be completed by taking the market 



1 Unavailabie. Included in undistributed. 
' Excludes District of Columbia. 
- Excludes Nevada. 
3 Excludes Mississippi. 

* Excludes Oklahoma. 
^ Excludes Kansas. 

^ Excludes Arizona, New Mexico, and \\'yoming. 
' Excludes Delaware and District of Columbia. 
8 Excludes Arizona, Utah, and Nevada. 

• Excludes North Dakota and South Dakota. 
1- Excludes Delaware. 

1' Excludes Idaho. 



as measured by the total manufacturing wage earners 
as the final stage and considering how much the geo- 
graphic relationships increase as the stages of produc- 
tion approach the market. For example, the coefficient 
comparing the distributions of automobile factories and 
producers of stamped and pressed metal is 1.00 minus 
0.65, or 0.35. 

Table 3 shows a number of coefficients of geographic 
a.ssociation as calculated (mainly from table 2)' for 
an alignment of industries that progresses, so far as 
possible, in order from raw materials toward final 
consumj^tion. The table is merely suggestive, of 
course, not comprehensive. Tt will be seen that, in gen- 
eral, the coefficients of localization (as measuring inde- 
pendence of ultimate markets) tend to be higher for 
the earlier process industries in each group, such as 
cotton gray goods and blast furnaces, and become lower 
as one approaches the service industries, such as baking. 

The coefficients comparing the location of automobile 
factories with that of coal mining, of blast furnaces, 
and of rolling mills are 0.17, 0.30, and 0.33, respec- 
tively.^ The lowest coefficient (0.17) is shown by the 



* Because of the apparent absence, in table 2, of various industries 
in different States, occasioned by the nondisclosure rule of the census, 
an adjustment of the data in that table has been necessary before they 
could be used in computing coefficients. For that purpose, the undis- 
tributed portion of the wage earners in each industry has been allocated 
to those States according to the number of establishments. This assumes 
that the plants in the missing States are all the same size. 

^ In the succession of processes named above, state data on bitumi- 
nous coal production, reported by the Bituminous Coal Division, De- 
partment of the Interior, have been used in preference to census data 
on the number of coal miners. The method is not limited to homogenous 
data and can be used to correlate locationally such diverse series as 
wage earners, "gainful workers," population, or even income-tax data, 
provided that the measures are comparable among areas. 



Industrial Location and National Resources 



119 



localization jnr the United Stales 


selected man 


ujactur 


ing ill 


lustries, 1939 


— Continued 


















5=? 
II 

in 

Z 




.2 

"a 

1 
> 


'a 
> 
1 


c 

1 

o 


as 
a 

"3 

CO 

Q 

3 
o 
02 


1 

c 


ts 

s 

o 




c 

s 


'a 
c 

1 
1 

s 

<fl 

5 


09 
E 

s 
o 

i 

1 

< 


a 

B 

.2 

"5 

c 

►J 


1 


Montana, Idaho, 
Wyoming, Colorado, 
Now Mexico, Ari- 
zona, Utah, Nevada 


c 
o 

c 


e 

1 

o 


B 

13 
O 


c 
OS 

|1 

II 


*H ■- 
t£ t .5 

t'C c 

O 


* z: 

e 

o 
U 


0.74 


2.16 


1.70 


0.95 


3.43 


1.01 


2.00 


0.67 


0.80 


1.67 


2.07 


0.82 


0.90 


1.61 


0.88 


1.14 


0.81 


3.49 








(•) 
(■) 

« 1.23 


40 














(■) 
(■> 

1.34 










(•) 


(•) 


.61 


(•) 


2.32 


1.86 


6,84 


0. (17 
























(■) 


(■) 


■ H 


(■) 


.ee 


.17 






i»2.63 


.86 


.27 


1.53 


.51 


.5.08 


1.24 


3.48 


1.11 


1.27 


.76 


3.22 


>' 1.22 


l.CO 


1.13 


7.46 


.21 


.73 


.28 


1.7S 


/.S« 
(•) 


.5/ 


.ts 


.45 


.SS 


f.S4 


l.M 


i.es 


f.OS 

(■) 
(•) 


■ H 


I.S5 


■H 


t.CO 


1.7S 


.88 

(■) 
(.) 


HO 

(') 
(') 


t.i4 

2.46 
.70 


.■;. 4S 
■ 46 


11,84 


.32 























































'2 Excludes New Mexico. 

'3 Excludes Arlcansas. 

» Excludes Montana and New Mexico. 

IS Excludes Arizona. 

i« Excludes New Hampshire. 

'^ Excludes Arizona, Nevada, New Mexico, and Wyoming. 

•8 Excludes Vermont. 

'* Excludes Arizona and New Mexico. 

20 Excludes Nebrasira. 

2> Excludes Wyoming. 

-3 Excludes North Dakota. 

-' Excludes South Dakota. 

relative location of coal mining and automobile fac- 
tories, •which are at the opposite ends of tlie production 
process. This tendenc_y may be illustrated further by 
the geographic relationship between wheat output and 
the successive manufacturing processes needed in 
adapting it for human consumption. Between wheat 
production itself, closely connected with natural re- 
sources, and flour milling, the relationship is 0.64; be- 
tween wheat production and bread baking it is only 
0.40. Between flour milling and bread baking the 
relationsliip is 0.54; and between bread halving and 
population it is 0.81. Wheat production shows a 
geographic linkage with population of only 0.46. 

These coefficients suggest the generalization that the 
further separated two industries may be in the vertical 
process of production, the lower is their geographic 
association likely to be. It appears true in America, 
though further confirmation is required, that processes 
tend to be associated regionally with the next in succes- 
sion ; l)ut wheie there is a series of successive processes, 
tlie head of the i)rocession may be located far away 
from the tail.'" There is a significant exception in 
automobile factories which, though nearer the market 
than "other iron and steel," have a higher localization 
coefficient. Clearly, some special factors deflect auto- 
mobile factories from the market and must be taken 
into account in planning location.^' 



'"Of. Political and Economic rianninc (P. E. P.). Report on the 
Location of Industry in Orcat Britain, London. 10.^.'i. 

"This doe.s not mean that the concentration of certain industries 
(Including automobile manufacture) in particular areas does not e."fcecd 
the degree economically or socially desirable. 



I Excludes Alabama. 

s Excludes Utah. 

s Excludes Arizona, Colorado, and New Mexico. 

' Excludes Maryland. 

^ Exclude.^ Idaho and Nevada. 

"* Excludes Nevada, New Mexico, and Wyoming. 

" Excludes Montana, Nevada, and New ^Iexico. 

' Excludes Arizona and Montana. 

- Excludes Arizona and Nevada. 

3 Excludes Montana, Nevada, and Wyoming. 

' Excludes Nevada and Wyoming. 



Table 3. — Geographic as-fociation beticeen selected industries mid 
other items, 1939 ' 

[Calculated by States or groups of States ') 



Industry (or item) 



(I) 



Total population 

Wheat production (bushels') 

Flour milling 

Bread baking... 



Industry (or item) 



(2) 



Bituminous coal production 
(tons). 



Blast furnaces - 



Steel works and rolling mills , 
Stamped and pressed metal- . 



Total wage earners in manufacturing. 

{Flour milling 
Bread baking... 
Total population..., 

Bread baking 

[Biscuit and cracker baking 

(Total population _ 

Blast furnaces 

Steel works and rolling mills 

Stamped and pressed metal 

Electric generating equipment 

Motor vehicles and bodies 

Hardware ' 

Steelworks and rolling mills 

Stamped and pressed metal 

Electric generating equipment.. 

Motor vehicles and bodies 

Hardware ' 

Stamped and pressed metal 

Electric generating equipment 

Motor vehicles and bodies 

Hardware >. ._. 

(Motor vehicles and bodies 

(Hardware J 



Coefficient of 

geographic 

association 

(columns 1 

and 2) 

(3) 



0.78 
.641 
.40 
.461 
.54 
.87' 
.81, 
.49 
.50 
.31 
.36 
.17 
.30 
.79 
.50 
.54 
.30 
.37 
.55 
.55 
.33 
.37 
.35\ 
.54/ 



I The number of wage earners in each industry has been used in the computations 
unless otherwise indicated. 
' See tabic 2 (or grouping of States. 
* Not elsewhere classified. 

The local coincidence of difl'erent industries as meas- 
ured by tlie coefficient of gcograpliic asswiation may 
be only an accident but it is usually due to some logical 
connection between the industries. The coincident 
industries may use the same factors of production, 
produce from the same raw material, or employ labor 
of the same skill. They may use jointly supplied fac- 
tors; one industry, for instance, may employ the men. 
tiiiother indiistrv tlie women of an area. Thev mav 



120 

converge on tlie same special markets. Or the coinci- 
dent industries may be more directly related. The 
product or byproduct of one industry may provide the 
raw material for the other, as in the procession from 
coal to automobiles; or one industry may provide serv- 
ices, such as making machine tools, for the other. 

Clearly, then, if two or more industries show a 
markedly similar geographic distribution and there is 
some logical linkage discoverable, there is a presump- 
tion, of which planning policy should take due heed, 
against locating one of the industries away from the 
others. There may, of course, be a logical relationship 
not disclosed by the relativ^e locations of the industries. 
The coefficient of geographic association of employed 
workers in fishing (1940) and fish canning, as reported 
for 1939, is only 0.37; this is because so much of the 
eastern catch is consumed fresh. Based on west coast 
figures only, the linkage would be much closer. As 
often happens, industry B is here more dependent on 
industry A than industry A on industry B. 

Specialization and Economic Balance 

Many localities and States maintain that there is not 
a proper diversity of their economic activities, and that 
such diversity is necessai-y to economic and social 
security. 

A State may be deemed to specialize to the extent 
that its economic structure differs from the basic pat- 
tern of the United States as a whole. If certain activ- 
ities, such as agriculture or cotton textiles, form a 
larger proportion of total economic activities in a State 
than they do in the basic pattern of the United States, 
then the State may be said to specialize, at least to some 
extent, in those activities. If, on the other hand, a 
State contains all the economic activities that exist in 
the United States and contains them in exactly the 
same proportions, its economy is as balanced and di- 
versified as the nation considered as a unit. 

Table 4 gives the percentage distribution of employed 
workers in 1940 for 18 manufacturing and 15 other 
industry groups in the United States, whereas table 
5 shows for an exactly similar industry classification 
the extent to which the percentage of employed per- 
sons in industry in each geographic division or State 
varies from that of the country as a whole.^- Since 
both State and national percentages add up to 100, the 
plus deviations of State from National percentages 
must add up to the same total as the minus deviations. 
This total of deviations (either plus or minus) forms a 

" The basic data for these tables are to be found in table 2, pp. 108- 
119. The number of persons employed and the classification of economic 
activities were taken from the Census of Population, 1940. 



National Resources Planning Board 

"coefficient of specialization" " which gives a general 
picture of the deviation of the State's economic activi- 
ties from those of the United States, and thus shows 
how far that State specializes in certain activities (see 
first line of table 5). Since the deviations are per- 
centages, the total is divided by 100. The degree of 
specialization in order of rank is shown for geographic 

Table 4. — Percentage distribution of employed ivorkers in major 
industry groups, United States, 19JiO 

[Percentage of national total] 
Total employed (45,166,083) 100.0 

Major industry groups : 

Manufacturing (subdivided below) 23. 41 

Agriculture 18. 54 

Forestry and fishing 0. 23 

Construction 4. 55 

Coal mining 1. 17 

Oil and gas wells 0. 41 

Other mines and quarries 0. 45 

Transportation, communication, etc 6. 89 

Wholesale and retail trade 16. 69 

Finance, insurance, and real estate 3. 25 

Business and repair services 1. 91 

Personal services 8. 88 

Amusement, recreation, etc 0.88 

Professional and related services 7. 35 

Government 3. 88 

Industry not reported 1.53 

Subdivisions of manufacturing (total : 23.41 percent) : 

Food and kindred products 2. 42 

Textile-mill products 2. 59 

Apparel and other fabricated textile products 1. 73 

Logging 0. 31 

Sawmills and planing mills 0.96 

Furniture, store fixtures, and miscellaneous wooden goods 0. 30 

Paper and allied products 0.73 

Printing, publishing, and allied industries 1. 40 

Chemicals and allied products 0. 97 

Petroleum and coal products 0. 45 

Leather and leather products 0. 81 

Stone, glass, and clay products 0.75 

Iron and steel and their products 2.80 

Nonferrous metals and their products 0. 62 

Machinery 2. 37 

Automobile and automobile equipment 1. 27 

Transportation equipment except automobiles 0. 68 

Other and not specified manufacturing industries 1. 76 

Source : Based on Census of Population, 1940. 

divisions and States in the first column of table 6. It is 
not meant to imply here that diversification is neces- 
sarily better than specialization, or that perfect diver- 
sity is the only criterion. The purpose of the tables is 
to summarize and compare the distribution of economic 
activities in the several States so that whatever policies 
are adopted can be effectively implemented. It will be 
noted that no State or division has a cofficient of spe- 
cialization above 0.421 (table 6), although in theory, 
if any area concentrated entirely on one activity, 
the coefficient would be very close to 1.00. This 
lowness of the coefficients reflects the fact that no 
area, unless it be very small, can specialize in one 

" To make clear how the coefficient of specialization is obtained, an 
example may be worked out from the first State, Maine, listed in 
table 5. All of the States have 33 deviations on which to build the 
coefficient of specialization. Since the subdivisiona of manufacturing 
are used, no account should be taken of the deviation for manufacturing 
as a whole. Adding the plus deviations of which (omitting that for 
manufacturing as a whole) there are 12, a total is obtained of 21.95. 
Adding the minus deviations, of which there are 21, a total is obtained 
of 21.90. The two totals, as mentioned above, should be equal ; and 
the discrepancy of the plus and minus totals Is due, of course, to 
tabulating percentages only to the second place of decimals. Dividing 
by 100 gives a coefficient of specialization for Maine in 1940 of 0.220. 



Industrial Location and National- Resources 



121 



economic activity only. There must always be cer- 
tain "i-esidentiary" industries servicing the community, 
such as retail trade, transport (including communica- 
tion), and public, domestic and professional services. 
The proportion of these activities to the total economic 
activities of a major area does not show any extreme 
deviation from the national proportion. 



Changes in Location Patterns 

The distribution of industry in general and of par- 
ticular industries is, of course, continually changing, a 
fact tiiat must be taken into account in planning loca- 
tion, since the plant to be located will be operating in 
the future, and it is the future conditions, so far as 
they may be computed, that are of greatest practical 



Table 5. — Deviations from the United States industrial pattern, hy divisions and States, 1940 
(Based on point deviations in percentage distribution of employed workers] 



Bank I. 



Coefficient of speciali- 
zation'.. 



Deviation + or — from 
IJnited States percent- 
age; 

Agriculture- 

Forestry and fishing 

Coal mining — 

Oil and gas wells 

Other mines and quarries- 
Construction 

Manufacturing 

Transportation, com- 
munication, etc 

Wholesale and retail 
trade 

Finance, insurance, and 
real estate... 

Business and repair serv- 
ices 

Personal services 

Amusement, recreation, 
etc 

Professional and related 
services.. 

Government 

Industry not reported- .. 
Manufacturing subdivided : 

Food and kindred prod- 
ucts 

Textile mill products 

Apparel and other fab- 
ricated textile produc- 
tion 

Logging 

Sawmills and planing 
mills 

Furniture, store fixtures, 
and miscellaneous 
wooden goods 

Paper and allied prod- 
ucts _ 

Printing, publishing, and 
allied industries 

Chemicals and allied 
products 

Petroleum and coal prod- 
ucts — 

Leather and leather prod- 
ucts 

Stone, glass, and clay 
products 

Iron and steel and their 
products 

Nonferrous metals and 
their products 

Machinery 

Automobile and automo- 
bile equipment -. 

Transportation equip- 
ment except autos 

Other and not specified 
manufacturing indus- 
tries 



Division 



New 
Eng- 
land 



Middle 
Atlan- 
tic 



Kast 
North 
Cen 
tral 



-13.64 

.14 

-1.17 

-.41 

-.30 

.08 

14.82 

-1.02 

.25 

.37 

-.06 
-.43 



1.23 
.07 
.22 



-.51 
6.19 



.12 
.06 

-.52 

.12 

1.15 

.13 

-.19 

-.30 

2.92 

-.24 

.74 

1.35 
2.29 

-1.06 

.64 



-13.93 
-.17 
.92 
-.28 
-.24 
.19 
7.31 

1.17 

1.49 

1.67 

.21 
.05 



.97 

-.05 

.57 



.04 
.57 



2.80 
-.25 

-.78 

-.05 

.21 

.53 

.48 

.12 

.30 

.28 

1.33 

.20 
.74 

-.71 

.35 



0.133 



-5.21 
-.16 
-.43 
-.21 
-.17 
-.43 
8.14 

.34 

.82 

-.16 

.10 
-1.58 



-.16 
-.73 
-.16 



.59 
-2.05 



-.63 
-.20 



.39 

.28 

.40 

-.01 

-.06 

-.03 

.36 

2.68 

.22 
2.68 

3.77 

-.30 

.63 



West 
North 
Cen- 
tral 



0.164 



13.52 
-.18 
-.89 
-.17 
-.06 
-.51 
-11.08 

.28 

.79 

-.36 

.17 
-1.46 



.63 
-.54 
-.13 



.90 
-2.42 



-.88 
-.18 

-.60 

-.42 

-.44 

-.10 

-.50 

-.22 

-.02 

-.25 

-1.86 

-.42 
-1.16 

-.95 

-.53 

-1.05 



South 
Atlan- 
tic 



East 
South 
Cen- 
tral 



0.176 



6.31 

.44 

.91 

-.32 

-.16 

.12 

-2.92 

-1.28 

-3.50 

-1.15 

-.58 
2.45 

-.22 

-1.35 
1.42 
-.18 



-.75 
4.14 



-.71 
.16 

.90 

.19 
-.26 
-.57 

.50 

-.33 

-.52 

-.07 

-1.58 

-.45 
-1.98 

-1.13 

.08 

-.56 



0.258 



22.35 
-.03 
1.39 
-.29 
.01 
-.70 



-2.05 

-5.50 

-1.73 

-.68 
.59 

-.45 

-2.21 
-1.45 
-.39 

-.88 
.08 

-.75 
.10 

1.23 

-.17 

-.47 

-.77 

-.07 

-.32 

-.53 

-.28 

-1.06 

-.34 
-1.95 

-1.12 

-.56 

-1.02 



West 
South 
Cen- 
tral 



MouU' 
tain 



0.207 



15.26 

.05 

-1.08 

2.03 

-.17 

.02 

-13.31 

-.89 

-.51 

-.95 

-.10 
1.54 



-.97 
-.51 
-.29 



-.48 
-2.30 



-1.33 
.14 



-.33 

-.41 

-.63 

-.52 

.90 

-.77 

-.40 

-2.45 

-.45 
-1.79 

-1.17 

-.55 

-1.52 



0.179 



7.49 
.01 
.25 
.08 
4.02 
.71 
-14. 99 

1.41 

.74 

-.94 

.35 
-1.45 

.07 

1.11 
1.13 
-.01 



-.45 
-2.17 



-1.60 
.06 



-.61 

-.69 

-.41 

-.78 

-.14 

-.76 

-.44 

-2.09 

-.44 
-2 06 

-1.21 

-.65 

-1.31 



Pacific 



-6.61 
.18 

-1.09 
.29 
.31 
1.41 

-5.54 

1.12 

4.35 

1.08 

.67 
.03 



1.05 
1.81 
-.20 



,53 
-2.33 



-.96 
.88 

1.34 


-.13 

.11 
-.38 

.19 

-.69 

-.22 

-1.60 

-.29 
-1.30 

-.87 

LI8 

-1.00 



New England 



New 
Maine Ham P-' 
sliire I 



0.220 



-5.47 
.93 
-1.16 
-.41 
-.26 
-.23 
9.43 

-.73 

-1.71 

-1.38 

.05 
.55 



-.01 
.18 
.43 



-.56 
5.77 



-1.18 
1.85 

.55 

.87 

4.28 

-.60 

-.78 

-.40 

5.47 

-.48 

-2.20 

-.57 
-1.12 

-1.24 

1.02 

-1.26 



Ver- 
mont 



0.269 



-9.77 
.13 
-1.17 
-.41 
-.27 
.57 
16.10 

-1.80 

-2.52 

-1.25 

.02 
.28 

-.30 

.61 
-.61 



-1.29 
6.44 



-1.42 
1.29 

.60 

1.41 

2.93 

-.29 

-.83 

-.43 

11.54 

-.23 

-2.08 

-.51 
-.29 

-1.24 

.68 

-.19 



0.160 



5.92 
-.02 
-1.17 
-.41 
.71 
-.08 
-1.45 

-.61 

-3.64 

-1.24 

.15 
.98 

-.39 

.48 
.28 
.46 



-.70 
.68 



-1.00 

.77 

1.35 

1.07 
.41 
-.49 
-.83 
-.44 
-.28 

2.02 

-2.09 

-.57 
.69 

-1.26 

-.66 

-.13 



Massa- 
chu- 
setts 



28 



0.219 



Rhode 
Island 



42 



0.306 



-16.20 
-.15 

-1.17 
-.41 
-.36 
-.08 
13.35 

-.37 

2.05 

.83 

.02 
-.44 

-.07 

2 08 
.37 
.22 



-.06 
5.68 



.39 
-.26 

-.82 

" .11 

1.16 

.52 

-.03 

-.25 

3.76 

-.29 

-.08 

.31 
2.19 

-1.02 

.54 

LSO 



Con- 
necti- 
cut 



Middle Atlantic 



-16.64 


-1.16 
-.41 
-.39 
.38 
22.40 



-2( 



-.30 
-1.54 



-.91 
19.02 



-.63 
-.27 

-.86 

-.44 

-.23 

-.30 

-.44 

-.14 

-.55 

-.48 

1.99 

.73 
2.28 

-1.19 

-.57 

S.39 



-14.65 
-.10 

-1.17 
-.41 
-.37 
.34 
20.05 

-2.04 

-1.55 

1.09 

-.24 

.82 

-.26 

.61 

-.71 
.22 



-1.09 
3.28 



-.46 

.07 

-.07 

.07 

-.36 

-.34 

-.38 

4.56 

5.59 
4.90 



3.95 



New New 
York Jersey 



-14.31 
-.17 
-1.17 
-.36 
-.32 
.32 
3.88 

1.41 

3.07 

2.75 

.46 
1.04 

.36 

1.78 
.50 
.76 



-.01 
-.53 



3.97 
-.27 

-.83 

.02 

.30 

.94 

.20 

-.19 

.57 

-.17 

-1.07 

.18 
.21 

-.76 

.08 

1.23 



0.203 



-15.48 
-.11 

-1.16 
-.41 
-.23 
.45 
13. M 

1.20 

.21 

2.37 

.10 
-.58 

-.12 

.25 

-.37 

.83 



.13 
1.44 



2.46 
-.30 

-.84 

-.18 

.15 

.32 

2.33 

.83 

-.08 
.64 

-.03 

.48 
2.22 

-.44 

1.27 

2.62 



Penn- 
syl- 
vania 



0.178 



-12.58 
-.20 

5.16 
-.09 
-.13 
-.13 

9.80 

.80 

-.33 

-.33 

-.11 
-1.18 



.07 

-.74 

.16 



.09 
1.84 



L16 
-.21 

-.68 

-.10 

.11 

-.01 



.24 

.07 

.80 

5.71 

!S2 

-.75 

.33 



' Most diversified ranked first. 

' The coefficient of specialization measures the extent to which the industrial pattern of each State differs from that of the United States as a whole. The number of persons 
employed in the several economic activities are expressed as percentages of the total employed in each State and in the United States. The percentages for each State arc sub 
tracted from the national percentages and tbe sum of either the plus or the minus differences is divided by 100. 



414786 — 43- 



-9 



122 National Resources Planning Board 

Tabij! 5. — Deviations from the United States industrial pattern, by Divisions and States, 19^0 — Continued 



Rank". 



Coefficient of specialization^. 



Deviation + or — from United States Percentage: 

Agriculture - - 

Forestry and fishing — - 

Coal mining-- 

Oil and gas wells - 

Other mines and quarries 

Construction — 

Manufacturing 

Transportation, communications, etc 

Wholesale and retail trade 

Finance, insurance, and real estate 

Business and repair serivces ■ 

Personal services - --. 

Amusement, recreation, etc -. 

Professional and related services. -- 

Government 

Industry not reported - 

Manufacturing subdivided: 

Food and kindred products. 

Textile mill products 

Apparel and other fabricated textile production 

Logging 

Sawmills and planing mills... — 

Furniture, store fixtures, and miscellaneous wooden 

goods 

Paper and allied products 

Printing, publishing, and allied industries 

Chemicals and allied products 

Petroleum and coal products. 

Leather and leather products 

Stone, glass, and clay products 

Iron and steel and their products 

Nonferrous metals and their products 

Machinery 

Automobile and automobile equipment 

Transportation equipment except autos 

Other and not specified manufacturing industries 



East North Central 



Ohio 



-7.57 
-.19 
-.18 
-.27 
-.20 
-.23 
9.99 

.52 

.74 
-.39 

.05 
-1.33 
-.06 

.01 
-.77 
-.14 

-.17 
-2.15 
.73 
-.28 
-.71 

.06 

.24 

.33 

.19 

-.08 

-.08 

1.41 

5.96 

.19 

3.47 

.63 

— .27 

1.96 



Indiana Illinois 



O.IOS 



-.75 
-.20 
-.31 
-.31 
-.24 
-.19 
6.60 
.07 
-.35 
-.75 
-.03 

-2.05 
-.17 
-.36 

-1.03 
.06 



-1.86 
-.25 
-.25 
-.45 



-.18 

-.14 

-.24 

.25 

-.64 

.65 

3,47 

-.05 

2.65 

L76 

-.11 

.37 



0.156 



-8.66 
-.19 

.03 
-.03 
-.32 
-.47 
5.17 
2.08 
2.82 

.83 

.39 
-1.06 

.05 
-.03 
-.41 
-.21 

1.55 
-2.11 
-.03 
-.29 
-.75 

.38 
.01 

1.18 
.08 
.09 
.18 
.06 

1.94 
.42 

3.22 

-.79 

-.30 

.32 



Michi- 
gan 



25 



-6.82 
-.11 
-1.12 

-.24 

.20 

-.54 

14.95 

-1.39 
-.48 
-.62 
-.07 

-1.96 
-.09 
-.62 
-.86 
-.25 

-.29 
-2.24 
-1.33 
-.03 
-.56 

.45 

.37 

-.14 

.07 

-.27 

-.54 

-.24 

.66 

.11 

.96 

18.22 

-..39 

.13 



Wis- 
consio 



0.145 



7.24 
-.07 
-1.17 
-.41 

22 

-'.S3 
2.07 
-1.16 
-.90 
-.92 
-.09 
-2.32 
-.23 
.14 
-.98 
-.17 

1.18 
-1.51 
-1.27 



.08 

.45 
1.34 
-.06 
-.57 
-..39 

.93 
-.45 

.04 

.19 
2.49 

.40 
-.44 
-.35 



West North Central 



Minne- 
sota 



0.169 



11.76 

-.15 

-1.17 

-.41 

.39 

-.53 

-10.96 

.11 

1.85 

-.17 

.19 

-1.42 

-.06 

1.22 

-.36 

-.31 

1.34 
-2.21 
-1.13 



-.57 

-.34 
-.20 
.05 
-.57 
-.37 
-.67 
-.iO 

-1.76 
-.42 

-1.11 

-1.02 
-.62 

-1.16 



Iowa 



17.24 
-.20 
-.57 
-.40 
-.32 
-.35 
-11.97 
-.32 

.11 
-.72 

.14 
-2.18 
-.18 

.69 
-1.13 

.24 

1.42 

-2.43 

-1.40 

-.28 

-.47 

.45 
-.62 
-.21 
-.64 
-.42 
-.72 
-.28 

-1.84 
-.51 
-.54 

-1.20 
-.63 
-.77 



Missouri 



0.107 



6.01 
-.19 
-.86 
-.38 

.17 
-.19 
-4.53 

.74 
1.67 

.11 

.16 
-.41 
-.15 
-.20 
-.81 
-.18 

.65 
-2.39 

.33 
-.14 
-.44 

-.21 
-.28 

,09 
-.12 
-.18 
1.76 

.04 
-1.23 
-.26 
-.69 
-.47 
-.38 
-.61 



North 
Dakota 



45 



34.84 
-.20 
-.70 
-.40 

-.43 
-2.52 
-20.91 
-1.82 
-2.98 
-1.68 

-.05 
-2.79 

-.33 
.53 

-.36 

-.23 

-1.03 
-2.58 
-1.70 
-.30 
-.94 

-.77 
-.73 
-.81 
-.95 
-.42 
-.80 
-.71 

-2.76 
-.58 

-2.23 

-1.24 
-.68 

-1.69 



South 
Dakota 



44 



29.52 

-.16 

-1.14 

-.40 

.91 

-1.51 

-18.88 

-2.52 

-2.02 

-1.52 

.07 

-3.20 

-.14 

1.40 

-.25 

-.19 

.07 

-2.57 

-1.70 

-.18 

-.60 

-.76 

-.72 

-.64 

-.88 

-.40 

-.78 

-.61 

-2.76 

-.57 

-2.18 

-1.26 

-.68 



Nebras- 
ka 



31 



18.83 

-.18 

-1.17 

-.39 

-.33 

-.63 

-16.66 

.90 

.50 

-.06 

.27 

-1.70 

-.12 

1.05 

-.03 

-42 



-2.56 
-1.69 
-.30 
-.89 

-.61 
-.66 
-.24 
-.79 
-.37 
-.75 
-.56 

-2.56 
-.51 

-1.93 

-1.20 
-.63 

-1.39 



Kansas 



12.87 

—.20 

-.76 

1.34 



-.29 

-14.32 

1.63 

.69 

-.60 

.25 

-1.55 

-.13 

1.02 

.12 

-.06 



-2.57 

-1.33 

-.28 

-.85 

-.58 
-.64 
-.09 
-.61 
.45 
-.78 
-.42 

-2.27 
-.46 

-1.92 

-1.15 
-.38 

-1.54 



Division 



South Atlantic 



Rank I.. 

Coefficient of specialization '... 

Deviation -f or — from U. S. percentage: 

.\griculture 

Forestry and fishing.. 

Ooal mining... 

Oil and gas wells .- 

Other mines and quarries 

Construction 

Manufacturing 

Transportation, communication, etc 

Wholesale and retail trade 

Finance, insurance and real estate 

Business and repair services. 

Personal services 

.\musement, recreation, etc. 

Professional and related services... 

Government-- 

Industry not reported 

Manufacturing subdivided: 

Food and kindred products - 

Textile mill products 

Apparel and other fabricated textile production. 

Logging.. 

Sawmills and planing mills 

Furniture, store fixtures and misc. wooden goods 

Paper and allied products 

Printing, publishing and allied industries 

Chemicals and allied products 

Petroleum and coal products 

Leather and leather products 

5=tone. glass and clay products 

Iron and steel and their products .' 

Nonferrous metals and their products 

Machinery 

Automobile and automobile equipment - 

Transportation equipment except autos 

Other and not specified manufacturing indus- 
tries 



Dela- 
' ware 



0.174 



-4.83 

-.06 

-1.17 

-.40 

-.36 

2.24 

6.47 

.82 

-2.33 

-.45 

-.21 

1.44 

-.24 

-.80 

-.13 



.05 

.59 

.20 

-.25 

-.28 

.12 

-.48 

-.61 

8.06 

.08 

1.59 

-.52 

-.88 

-.40 

-1.77 

-1.16 

1.18 

-.04 



Mary- 
land 



0.158 



-8.62 

.38 

-.76 

-.41 

-.28 

1.14 

2.71 

1.56 

-.08 

.11 

-.11 

1.13 

.01 

-.13 

2.78 

.56 

.91 

-1.76 

1.64 

-.22 

-.60 

-.20 

-.15 

.19 

1.37 

-.06 

-.18 

.05 

2.16 

-.03 

-1.13 

-.85 

1.82 

-.36 



District 
of Co- 
lumbia 



48 



0.390 



-18.37 

-.22 

-1.17 

-.41 

-.42 

1.84 

-16.21 

-.05 

.33 

1.48 

-.20 

6.29 

.00 

2.31 

25.09 

-.32 

-1.39 
-2.67 
-1.68 
-.31 
-.92 
-.71 
-.63 
1.68 
-.87 
-.43 
-.80 
-.66 
-.83 
-.55 
-2.18 
-1.24 
-.64 

-1.60 



Virginia 



5.33 

.51 

.98 

-.41 

-.02 

.66 

-3.30 

-.02 

-4.30 

-1.22 

-.64 

1.23 

-.35 

-1.41 

3.19 

-.24 

-.73 

.66 

-.68 

.13 

1.34 

.52 

.04 

-.64 

1.24 

-.38 

-.21 

-.26 

-2.26 

-.52 

-2.16 

-1.11 

1.51 

.20 



West 
Virginia 



36 



. 43 



-3.26 
-.17 
19.23 
.66 
-.07 
-.56 

-6.77 
.65 

-4.29 

-1.83 
-.60 

-1.71 
-.31 
-.53 

-1.31 
-.14 

-1.34 

-1.91 

-1.34 

.42 

.47 

-.54 

-.37 

-.81 

1.95 

-.12 

-.50 

2.57 

.79 

-.16 

-1.91 

-1.25 

-.53 

-1.18 



North 
Carolina 



South 
Carolina 



319 



15.04 

.03 

-1.16 

-.41 

-.22 

-.66 

3.52 

-3.49 

-6.21 

-1.97 

-.80 

-.67 

-.41 

-2.08 

-1.66 

-.23 

-1.30 
13.13 

-1.21 
.20 
1.31 
1.22 
-.30 
-.95 
-.21 
-.43 
-.70 
-.40 

-2.62 
-.50 

-2.13 

-1.20 
-.64 

.26 



0.370 



20.91 

-.07 
-1.17 

-.41 

-.25 
-1.17 

-.58 
-3.99 
-7.33 
-2.03 
-1.01 
1.88 

-.49 
-2.39 
-1.26 

-.66 

-1.53 
12 61 

-1.37 

.22 

1.42 

-.24 

-.30 

-1.07 
-.32 
-.41 
-.80 
-.44 

-2.71 
-.60 

-2.21 

-1.24 
-.18 

-1.40 



Georgia 



0.269 



15.37 

.99 

-1.15 

-.41 

-.11 

-.79 

-4.88 

-2.18 

-4.98 

-1.50 

-.74 

4.01 

-.38 

-2.38 

-.46 

-.44 

-.78 

5.07 

-.26 

.09 

1.28 

-.10 

-.35 

-.81 

.10 

-.36 

-.56 

-.24 

-2.31 

-.54 

-1.98 

-1.03 

-.65 

-1.45 



Florida 



0.182 



-1.45 
1.60 
-1.17 
-.40 
-.08 
1.85 
-11.68 
-.24 
3.68 
-.21 
-.08 
8.19 
-.57 
-.86 
.28 
-.02 

-.04 

-2.63 

-1.58 

.61 

1.23 

.15 

-.26 

-.48 

-.27 

-.40 

-.79 

-.43 

-2.59 

-.55 

-2.13 

-1.20 

-.29 

-.13 



East South Central 



Ken- 
tucky 



0.232 



17.93 
-.18 
6.28 
-.11 
-.06 
-.36 
-11.62 
-.60 

-4.14 

-1.46 
-.34 

-1.31 
-.32 

-1.81 
-.81 
-.24 

-.29 
-2.18 
-.75 
-.08 
-.03 
-.06 
-.63 
-.53 
-.67 
-.22 
-.44 
-.34 
-1.40 
-.34 
-1.47 
-1.03 
-.62 

-.44 



Tennes- 
see 



0.194 



14.59 

-.12 

-.16 

-.40 

.06 

-.01 

-5.10 

-1.44 

-3.35 

-1.32 

-.48 

1.49 

-.41 

-1.61 

-1.41 

-.37 

-.70 

1.38 

-.22 

.04 

.74 

.18 

-.47 

-.53 

.91 

-.38 

-.15 

-.15 

-1.43 

.03 

-2.01 

-1.00 

-.64 

-.71 



Ala- 
bama 



21.03 
.09 

1.41 

-.40 

.34 

-1.33 

-6.02 

-2.59 

-6.63 

-1.83 

-.91 

1.71 

-.51 

-2.60 

-1.49 

-.40 

-1.28 

2.41 

-1.33 

.13 

2.09 

-.51 

-.32 

-.96 

-.31 

-.26 

-.79 

-.29 

1.05 

-.53 

-2.10 

-1.23 

-.42 

-1.39 



Missis- 
sippi 



0.421 



39.14 

.12 

-1.17 

-.23 

-.37 
-1.23 
-14.23 
-3.89 
-8.49 
-2.44 
-1.06 
.26 

-.57 
-3.10 
-2.19 

-.67 

-1.32 
-1.85 
-.74 
.32 
2.29 
-.32 
-.49 
-1.14 
-.34 
-.42 
-.81 
-.38 
-2.75 
-.60 
-2.27 
-1.25 
-.54 

-L63 



Footnotes on page 121. 



Industrial Location and National Resources 



123 



Table 5. — Deviations from 


the United f^tates >> 


dnstiial pattern, hy divisions am 


fitute 


<. i9-}0— Cont 


inued 








Division 




West South Central 


_ 






Mountain 








Pacific 




Arkan- 
sas 


Loui- 
siana 


Okla- 
homa 


Teias 


Mon- 
tana 


Idaho 


Wyo- 
ming 


Colo- 
rado 


New 
Meiico 


Ari- 
zona 


Utah 


Ne- 
vada 


Wash- 
ington 


Ore- 
gon 


Cali- 
fomia 


Bank'... 


47 


30 


26 


16 


33 


34 


35 


4 


27 


" 


15 


40 


24 


9 


18 


Cnpfficient of soecialization ' ... 


0.371 


0.223 


0.212 


0.188 


0.237 


0.247 


0.266 


01.46 


0.214 


0.189 


183 


0.283 


0.204 


0.164 


0.189 






Dpvintion + or - from \>. S. percentage: 


32.85 
.02 

-.89 

-.01 

-.12 
-1.60 
-13. ,53 
-2.62 
-5.68 
-2.03 

-.66 
-1.00 

-.38 
-2.46 
-1.70 

-.20 

-1.35 
-.244 

-1.47 

.76 

3.37 

.07 

-.32 

-.96 

-.67 

-.26 

-.80 

-.49 

-2.69 

-.54 

-2.24 

-1.22 

-.67 

-1.61 


13.71 

.73 

-1.17 

1.30 

-.24 

-.02 

-10.56 

-.34 

-2.09 

-1.31 

-.46 

3.28 

-.11 

-1.33 

-.91 

-.53 

.28 
-2.23 

-1.24 
.39 
1.65 

-.29 
.31 

-.79 

-.16 
.64 

-.80 

-.27 
-2.46 

-.53 
-2. OS 
-1.21 

-.41 

-1.39 


14.57 
-.20 
-.94 
4.11 

.11 

-.47 

-1,1.71 

-1.83 

.55 
-.67 

.23 
-.36 
-.05 

.."il 
-.02 
-.13 

-.58 
-2.45 

-1.64 
-.04 
-.43 

-.."iO 

-.69 

-.45 

— . 77 

.98 

-.80 

-.31 

-2.38 

-.33 

-1.83 

-1.22 

-.64 

-1.58 


11.22 

-.10 

-1.14 

2.20 

-.24 

.63 

-13.51 

-.33 

1.14 

-.62 

.09 

2.19 

-.11 

-.88 

-.18 

-.37 

-.48 
-2.24 

-1.23 

-.07 

.03 

-.37 

-.60 

-.54 

-.53 

1.29 

-.75 

-.44 

-2.40 

-.44 

-1.66 

-1.13 

-.54 

-1.61 


13.30 

.14 

-.33 

.02 

5.57 

.21 

-16.00 

1.13 

-.89 

-1.36 

.19 

-2.87 

-.09 

.28 

.90 

-.25 

-.92 
-2. 57 

-1.69 
.24 
.26 

-.71 
-.72 
-.65 
-.93 
-.03 
-.79 
-.61 
-2.68 
1.46 
-2.17 
-1.26 
-.67 

-1.06 


18.11 

.23 

-1.15 

-.39 

3.76 

-.02 

-15.49 

-.32 

-.33 

-1.56 

.21 

-2.84 

.05 

.01 

-.33 

.03 

-.53 
-2.57 

-1.69 
.99 
1.30 

-.68 

-.72 

-.51 

-.94 

-.38 

-.79 

-.60 

-2.74 

-.12 

-2.14 

-1.25 

-.55 

-1..=.9 


10.86 

-.06 

3.61 

1.63 

-.01 

,24 

-18.09 

3.60 

-2.43 

-1.77 

.16 

-2.39 

-.09 

.31 

4.94 

-.42 

-1.20 
-2.58 

-1.70 
-.03 
-.48 

-.65 

=;^ 

-.94 
1.27 

-.79 

-.49 
-2.74 

-..'58 
-2.20 
-1.26 

-.64 

-1.70 


2.49 

-.09 

1.04 

-.32 

1.79 

.56 

-13.24 

1.40 

2. 57 

.06 

.09 

-.50 

.01 

2.11 

1.27 

.14 

.37 
-2.54 

-1.53 
- 19 
-.64 

-.59 
-.63 
-.16 
-.68 
-.27 
-.69 
-.28 
-.82 
-.30 
-1.82 
-1.16 
-.66 

-.68 


13.47 

-.03 

.44 

1.79 

2.04 

1.41 

-17.01 

-.26 

-1.27 

-1.84 

.18 

-.72 

-.15 

1.18 

.69 

.17 

-1.61 
-1.16 

-1.69 

-.08 

.04 

-.64 

-.73 

-.78 

-.75 

-.25 

-.79 

-.34 

-2.72 

.07 

-2.25 

-1.26 

-.66 

-1.43 


2.99 

-.02 

-1.15 

-.38 

8.02 

1.33 

-16.02 

.63 

1.61 

-1.27 

.20 

.65 

.23 

1.36 

.94 

-.16 

-.89 
-1.03 

-1.70 

.03 

-.07 

-.39 
-.72 
-.48 
-.71 
-.43 
-.77 
-.63 
-2.58 
.86 
-2.13 
-1.23 
-.66 

-1.68 


.63 

-.01 

.32 

-.37 

4.81 

.86 

-12.45 

3.58 

2.72 

-.29 

.33 

-2.83 

.11 

1.67 

1.00 

.02 

.52 
-2.09 

-1.32 
-.26 
-.75 

-.67 

-.65 

-.08 

-.61 

-.09 

-.77 

-.32 

-2.03 

1.82 

-2.03 

-1.20 

-.66 

-1.38 


-3.28 

-.09 

-.17 

-.39 

14.63 

2.82 

-18. 90 

5.57 

-.26 

-1.61 

.23 

-.84 

1.79 

-.60 

1.65 

.43 

-1.46 
-2.58 

-1.69 
-.28 
-.73 

-.74 
-.72 
-.63 
-.82 
-.43 
-.79 
-.61 
-2.76 
1.16 
-2.26 
-1.25 
-.67 

-1.67 


-4.80 

.69 

-.74 

-.40 

.00 

1.61 

-1.85 

1.59 

2.42 

.28 

.39 

-1.55 

.06 

.50 

2.06 

-.17 

.33 
-2.47 

-1.36 
3.21 
4.75 

.06 

.85 

-.11 

-.66 

-.39 

-.76 

-.41 

-1.% 

-.23 

-1.84 

-1.14 

1.65 

-1.37 


-.24 

.30 

-1.16 

-.40 

.29 

.76 

-2.48 

1.01 

2.22 

-.24 

.46 

-1.28 

.08 

.66 

-.04 

.05 

.00 
-1.97 

-1.35 
3.75 
6.19 

.35 

.19 

-.09 

-.76 

-.39 

-.73 

-.60 

-2.07 

-.45 

-1.79 

-1.15 

-.55 

-1.25 


-8.03 


Forestry and fishing 


.06 


Coal mining 


-1.17 
.66 




.39 




1.46 


Manufacturing 

Transportation, communication, etc 


-6.90 
1.02 
5.15 


Finance, insurance, and real estate 


1.48 
.78 


Personal services .. . 


.62 




1.63 




1.24 




2.03 


Industry not reported.. 


-.25 
.65 


Textile mill products . 


-2.35 


Apparel and other fahricated textile pro- 


-.80 




-.12 


Sawmills and planing mills . . 


-.23 


Furniture, store fixtures and misc. wooden 


-.07 


Printing, publishing and allied industries. 


-.42 

.19 

-.26 


Petroleum and coal products . . - 


.42 




-.67 


Stone, glass and clay product? 

Iron and steel and their products 

Nonferrous metals and their products 


-.13 
-1.44 

-.28 
-1.09 


.\utomobile and automobile equipment... 
Other and not specified manufacturing in- 


-.77 
1.33 

-.87 







Footnotes on page 121. 



T.\BLE 6. — industrial special! zalion, d(gr(( and rank, by geographic divisions and states, 1940 





CoeflScient 
of special- 
ization 


Rank> 




Ccefllcient 
of special- 
ization 


Rank" 


Direction of specialization 


Division:. 

£ast North Central 


0.133 
.164 
.164 
.176 
.177 
.179 
.200 
.207 
.268 

.107 
.108 
.145 
.146 
.156 
.158 
.168 
.160 
.164 
.169 
.174 
.175 
.178 
.182 
.183 
.188 
.ISO 
.189 
.193 


1 
2 
3 
4 
5 
6 
7 
8 
9 

1 
2 
3 
4 
5 
6 

8 

1> 
12 1 
13 

14 > 

15 1 

16 ! 

17 ■ 
18 
19 


State— Continued. 

Tennessee . _ _ _ _ 


' 0. 194 
.198 
.202 
.203 
.204 
.212 
.212 
.214 
.219 
.220 
.223 
.225 
.232 
.237 
.247 
.265 
.267 
.209 
.269 
.270 
.283 
.303 
.306 
.319 
.320 
.364 
.370 
.371 
.390 
.421 


20 
21 
22 
23 
24 
26 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
46 
46 
47 
48 
49 


Agriculture. 






Do. 


Middle Atlantic 


New York . 


Trade. 








Pacific 


M'ashington - _ . _ - 


Trade. 


















Do. 


East South Ceotral j 


Massachusetts . . _ _ . 


Alanufacturing. 


State' 




Do. 




l.otiisiflTin 


-Agriculture. 






Do. 




Kentucky _ ._ 


Do., coal. 












Do. 


Ohio _ -_ _ _ ---. 


Wyoming 


Do. 




West Virginia 

New Hampshire - 


Coal. 




Manufacturing. 




Georgia... — : 










Nevada _ _ . 


Minerals, transport. 


Virginia ______ . 


.\labama 


Agricultuie. 


PenTi<;yIvftTiiA 


Rhode Island _ ,_ 


M auufacturing. 


Florida 






Utah 


South Dakota _ _. 


Do. 






Do. 


Arizona - _ - _ - 


tfouth Carolina _ ___ . „_.. _. 


Do. 






Do. 


Kansas 


District of Columbia 


Government. 















Source: Table 5. 

< Most diversified ranked first. 



124 



National Resources Planning Board 



Table 7. — Coefficientis of geographic association for selected 
items, decennial census years 1899-19S9 

(All manufacturing items rpproscnted by wage earners] 



Table 8. — Coefficients of redistribution of population, and of 
wage earners in selected items, decennial census years 
1899-19S9 



First item 



Population. 



Total manufactur- 
ing. 

Boot and shoe pro- 
duction. 

Slaughtering and 
meat packing. 



Second item 
{Related to first item) 



Land area .-. 

Total manufacturing 

Boot and shoe production,. 

Slaughtering and meat 
packing. 

Land area 

Boot and shoe production. . 

Slaughtering and meat pack- 
ing. 

Land area 

Land area 



1899 


1909 


1919 


1929 


0.52 


0.55 


0.56 


0.57 


.73 


.75 


.75 


.78 


.45 


.43 


.43 


.46 


.45 


.55 


.52 


.59 


.37 


.38 


.39 


.41 


.53 


.51 


.52 


.52 


.39 


.47 


.45 


.55 


.18 


.19 


.18 


.20 


.26 


.34 


.37 


.41 



1939 



0.58 
.78 
.48 
.62 

.40 
.55 
.54 

.20 

.47 



importance. This change can be measured by changes 
in regional densities of population, in the urbanization 
quotient, in the location quotient, and the coefficients of 
localization and geographic association. 

Owing to the specific significance of the coefficient 
of geographic association, this measure has been com- 
puted for the decennial census years from 1899 to 1939 
for the relationships among total wage earners in man- 
ufacturing, population, land area, and wage earners in 
two specific industries, boot and shoe, and slaughtering 
and meat-packing industries (table 7). Here again 
high or rising coefficients indicate, respectively, close 
or increasing geographic association. All of the items 
considered showed somewhat closer geogi'aphic as- 
sociation in 1939 than in 1899. Although in most cases, 
the gain was only moderate, the association of slaugh- 
tering and meat packing with population, with wage 
earners in total manufacturing, and with land area 
increased markedly during the period. This increase 
reflects the wider dispersion among the population 
and area that took place in the industry. 

The extent of redistribution of industry among areas 
is indicated by "coefficients of I'edistribution" shown in 
table 8 for population and for wage earners in total 





1899-1909 


1909-19 


1919-29 


1929-39 


1899-1939 


Population 

Total manufacturing 


0.041 
.038 
.069 
.141 


0.024 
.062 
.085 
.091 


0.036 
.060 
.152 
.161 


0.020 
.044 
.103 
.115 


0.104 
.149 


Boot and shoe production 

Slaughtering and meat packing. . 


.265 
.389 



manufacturing, in boot and shoe production, and in 
slaughtering and meat packing." Tliis coefficient is 
the sum of the positive (or negative) differences be- 
tween census years in the percentage distribution 
among States of population and of the other items 
considered. Complete redistribution, i. e., a shift 
from zero to a finite percentage or vice versa in all 
States, would be represented by a coefficient of one 
and no change by zero. The highest of the coefficients 
for any decade (0.16) was shown by the meat packing 
in the decade from 1919 to 1929, and the lowest by 
population in the decade from 1929 to 1939. Redistri- 
bution was less in the 1930's than in the 1920's, but not 
consistently lower than in each of the two previous 
decades. The redistribution over the period 1899 to 
1939 was substantial, although less than the aggregate 
for the four decades included, thus reflecting the fact 
that some of the redistribution in later decades can- 
celled that in earlier decades. 

These measures of changes in location reflect only 
net changes. They do not, therefore, indicate all the 
shifts in industry. Alterations of locational patterns 
may occur because of the construction of new plants, 
abandonment of old ones, or differential rates of 
growth or decline among existing plants. It is neces- 
sary to record these changes separately to measure the 
gross rather than the net changes in redistribution. 

" This coefficient is used by E, M. Hoover to measure population re- 
distribution. See "Interstate Redistribution of Population from 1850 
through 1040." Journal of Economic History, November 1941, pp. 
199-205. 



CHAPTER 6. MATERIALS 

By Wilbert G. Fritz and Oscar L. Endler* 



With respect to materials, tlie present-day economy 
is characterized byi: (1) the large volume of commod- 
ities absorbed bj' ultimate consumption, by interven- 
ing processes of production, and by wastage; and (2) 
the marked extent to which the end products of in- 
dustry differ in character and location from the raw 
materials. A study of the influence of materials on 
the location of industry must consider all stages of 
ultilization and the increasing concentration or dis- 
persion at each level. 

The output of one industry becomes the source of 
supply for a succeeding industry or group of indus- 
tries. A sequence in type of matei'ial commonlj' found 
in the utilization of copper, steely wool, cotton, and 
other important commodities is : crude raw material ; 
refined raw material; one or more stages as a basic 
manufactured product; and one or more stages as a 
special purpose product, usually in combination with 
other types of materials. There appears to be some 
tendency toward geographic concentration of indus- 
tries according to types of materials. Industry group- 
ings based largely on types of materials, therefore, are 
helpful in developing a perspective, especially for 
those, such as steel, lumber, glass, cotton, and wheat, 
that tend to be the leading kinds of materials through 
many or most of the stages of production. 

The degree of association of an industry with mate- 
rials and the kind of material used are special prob- 
lems for investigation. Geographic sources of mate- 
rials have been discussed in chapters 1 and 2, which 
cover the effect of resources on the location of indus- 
try. It will be the major purpose of this chapter to 
explore materials from an industrial standpoint ; that 
is, to show how materials are absorbed in industry, and 
how this process influences the locating of industry. 
Owing to the locational significance of manufactur- 
ing, discussion is centered around that activity. 

Materials used in other activities also have some 
effects on location, but usually indirectly. Materials 
are the least represented in pure sei'vice industries, 
which, however, are relatively a small factor in the 
economy. The trend, no doubt, is toward the use of 
more materials in such activities. The volume of ma- 
terials going into buildings, equipment, and supplies 
for education, health, and governmental services is now 
very large. The location of schools, post offices, and 

•Respectively, Principal E!coDomist and Senior Statistician, National 
Resources Planning Board. 



other service institutions, however, is more the result 
of social policy than of sources of material and their 
utilization. Accordingly, they are only of incidental 
interest here. 

Historically, the more complex forms of utilization 
of materials have been added in large part to less com- 
plex forms, with the result that the influence of origi- 
nal sources of materials has in general become more 
remote. The increasing use of salvage material acts in 
the same direction. Volume loss, depreciation, and 
wastage of materials are determinants of the extent to 
which these forces may operate. An economy based 
mainly on transient goods has a simpler location prob- 
lem than one based more largely on durable goods. In 
fact, considerable activity grows out of the effort to 
preserve nondurable goods, as in the caiming and pre- 
serving industries. Painting, or otherwise protecting 
commodities, is also an effort to increase durability. 
This extension of life affects both the usefulness and the 
quantity of consumption of materials. A classification 
of materials based on durability, however, is less read- 
ily obtainable than the categories used in reports of 
the Census of Manufactures, and shows less in regard 
to stages of production, types of processes, combina- 
tions of materials, and ultimate use of the product. 

Types of Materials 

Materials as essentials for industry comprise raw 
materials for manufacture; semimanufactured mate- 
rials for further processing; supplies necessary as aids 
in processing and containers for products; fuels and 
purchased electric energy which are needed to satisfy 
power, heat, and process requirements; and purchased 
contract work. 

Raw materials consumed in manufacturing estab- 
lishments may be delivered to the factory in the state 
in which they are found at various sources. Most of 
them, however, undergo some processing at or near 
their source before they are ready for smelting, manu- 
facturing, or direct marketing to consumers. The term 
"raw materials" is broad enough to include substances 
which result from rudimentai-y processes applied at 
the source, such as the mine, the grain elevator, or the 
quarry. Products of mines especially arc not always 
immediately suitable for manufacturing. They are 
often treated by various milling operations or bene- 
ficiating processes such as amalgamation, crushing, 
cyanidation, grinding, flotation, or sintering. In a way 

126 



126 



National Resources Planning Board 



these operations to concentrate or improve the grade of 
ores may be termed manufacturing processes ; but since 
they usually take place very close to the mines they 
are commonly considered part of mining activities. 
The smelting and refining of the concentrated ores then 
become the first step in the manufacturing cycle. Simi- 
lar examples of initial rudimentary processing are 
found in agriculture such as the ginning of cotton, or 
the shelling of corn. 

Semimanufactured materials, as broadly defined by 
the Bureau of the Census, are materials which either 
have been processed in a manufacturing establishment 
or have been subjected to certain processing operations 
generally carried on in factories. Some of these ma- 
terials, for example, pig iron, are not ready for ulti- 
mate consumer use without further processing. Others, 
such as sugar, wire, sheet steel, and lumber, are used as 
finished products by certain consumers, but they are 
used also in great quantities as materials for tlie manu- 
facture of other products. Often, it is difficult to draw 
a line between raw and semimanufactured materials, 
but the above definition, limiting raw materials to 
substances which have had at best only rudimentary 
processing, aids in the distinction. 

Supplies and containers are often described as ex- 
pense materials which do not become a part of the 
finished product, but which are indispensable to the 
various processing or marketing activities. Examples 
of such materials are lubricating oils, abrasives, ma- 
chine parts, machine tools, furnace linings, and paint 
for maintenance. Containers needed by the manufac- 
turer are frecjuently purchased completely manufac- 
tured and assembled for use. 

Fuels and purchased power, such as coal, coke, fuel 
oils, gasoline, gas, and purchased electric energy, may 
be considered broadly as materials and, like the mate- 
rials more directlj' related to the manufactured prod- 
ucts, must be obtained or assembled by the manufac- 
turer to carry on his work. In many establishments, 
such as those in the byproduct coke and carbon black 
industries, substances usually used for fuels are true 
raw materials for manufacture. In most establish- 
ments, however, fuels and purchased electric energy 
are materials for heat, power, and other process re- 
quirements but do not become part of the final product. 
For this reason their relations to location of industry 
are treated separately in chapter 7. 

Origin of Manufacturing Materials 

Since materials vary in geographic distribution, 
quality, and accessibility, the industrialist whose ac- 
tivities depend much on the location of one or more 
materials will consider their sources and future supply 



in locating his establishment. This consideration is 
especially necessary with regard to minerals, such as 
coal, iron ore, and copper ore, which are consumed in 
great quantities. 

Discovery of new deposits, changes in mining 
methods, new techniques of ore reduction, and changes 
in prices may alter ajipreciably the economies of min- 
eral supplies. New processes of mineral concentration 
and recovery in some instances have made profitable 
the reworking of ''leavings" or "tailings" of earlier 
extractions and thus have added to. the total available 
supply of materials. Notable examples of this are 
found in the liistory of the production of copper and 
anthracite. When the iron and steel industry first 
started, the low-grade iron ores in the Appalachian 
region were used along with the abundant coal depos- 
its in the vicinity. At a later date rich iron ore de- 
posits were discovered in the Lake Superior district 
which almost entirely displaced these sources of iron 
ore. It is possible that such discoveries of new depos- 
its of minerals may completely alter the locational 
pattern of industries by creating more favorable com- 
petitive conditions in new areas. Following the Lake 
Superior ore discoveiy, however, the original iron 
works in the coal area managed to continue in their 
formei' location partly because they were close to 
sources of coal needed in great quantities, whereas the 
ore could be moved cheaply down the Great Lakes. 
If the rich iron ore reserves should become exhausted 
in the Lake Superior area, there would be more incen- 
tive to utilize the great deposits of low-grade iron 
ores in the Api:)alachian region. In fact, should more 
economical methods be discovered to reduce these ores, 
other iron and steel x^lants may be established in that 
i-egion and may be successful in competing with mills 
using the Lake Superior ores. At present there are 
steel centers in eastern Pennsylvania and in Alabama 
where the Appalachian iron ores are suitable to afford 
competition with the Pittsburgh, Cleveland, and other 
districts using Lake Superior ores. 

The availability of mineral resources is not flexible 
because their deposits are fixed in grade and in geo- 
graphic position. Even when there is a choice between 
several fixed sources, there is always the fact to consider 
that mineral resources are wasting assets. The enter- 
prising manufacturer who depends on a continued 
supply of raw materials may consider both domestic 
and international sources for his establishment, es- 
pecially if there is a likelihood that domestic sources 
may soon be exhausted. If reduction of bulk is large, 
he will probably endeavor to concentrate and refine the 
minerals near sources of supply. Sometimes, as in the 
case of iron ores having a rich metal content, it is more 
efficient to move the ores to the source of energy for 



Indiistrial Location and National Resources 



127 



refining, jjarticularly if that soui'ce is close to the mar- 
kets for the manufactured products. Thus markets and 
sources of coal may influence the location of blast fur- 
naces more than the deposits of iron ore. 

Compared to the large list of finished products which 
result from manufacture, the number of raw materials 
is small. Their origins also are relatively few in num- 
ber, consisting almost wholly of five exti'uctive industry 
groups, classed as follows : agriculture and animal hus- 
bandry; mining and quarrying; logging and forestry; 
hunting and trapping; and fishing. There are no 
very recent statistics available to show the relative 
importance of these various extractive industries in 
supplying raw materials to manufacturers. The 
Bureau of the Census, however, has estimated the 
value of the products contributed to manufacturing 
industries in 1929 by each of the extractive sources 
(table 1). Because the relative importance of the value 
of raw materials derived from each of the extractive 
industries has probably changed little since 1929, the 
data for that year are still a useful indication of the 
relationship of raw materials to manufacturing. In 
terms of cost, agi'iculture supplied 67.4 percent of the 
raw matei'ials (not including fuels and purchased 
power) used in manufacturing in 1929; mining and 
quarrying supplied 27.6 percent ; logging and forestry, 
3.8 percent; and hunting, fishing, and trapping com- 
bined, only 1.3 percent (table 1) . The volume of manu- 
factui'e associated with the materials, however, shows 
a far different distribution. One-half of the total value 
added by manufacturing was for industries consuming 
materials (excluding fuels, which would have increased 
the proportion) obtained from mines and quarries. 
The greatest relative increase in value added by manu- 
facture, however, was for industries consuming mate- 
rials of the logging and forestry sources, the ratio to 
cost of materials being 13 to 1. The corresponding 
ratio was 4.5 to 1 for mining and quarrying materials, 
whereas those for materials of agriculture and of hunt- 
ing, trapping, and fishing were each approximately 
1 to 1. 

Eighty-three percent of the materials used in Amer- 
ican manufacturing were of domestic origin. Among 
the foreign materials used, those of agricultural origin 
predominated, the proportion being 81 percent of the 
total for foreign materials. 

These comparisons of raw materials are all in terms 
of values. No doubt the locational pull of materials 
is partly related to such values owing to positively cor- 
related outlays for handling, transportation, insur- 
ance, and other requirements. This is particulai'ly 
likely since the cost data are for materials delivered 
to the plant and therefore include outlays for getting 
the materials from the source to the consuming plant. 



Table 1. — Estimated distribution among industry sources {do- 
tnestic and foreign) of raw materials consumed in manufac- 
turing in the United States, and the prol)al)le value added to 
materials by manufacture, 1929 

[Values in millions of dollars] 



Industry source 



Total, all sources 

Apiculture _ 

Mining and quarrying 

Lugging and forestry. , 

Hunting, fishing, and 

trapping 



All raw ma- 
terials for 
United States 
manufactures 



Value' 



12.676 

8,541 

3.494 

477 

164 



Per- 
cent of 
total 



100.0 
67.4 
27.6 
3.8 

1.3 



Raw mate- 
rials of 
domestic 
origin 



Value 



10, 472 

6.763 

3,279 

390 

40 



Per- 
cent of 
total 



100.0 
64.6 
31.3 
3.7 



Raw mate- 
rials of 
foreign 
origin 



Value 



2,204 

1,778 
215 
87 

124 



Per- 
cent of 
total 



100.0 
80.7 
9.8 
3.9 

5.6 



Probable 
value added 
by manu- 
facture 



Value 



Per- 
cent of 
total 



31,885 
9,608 

15,929 
6,277 

171 



100.0 
29.8 
50.0 
19.7 



Source; Cost data from Tracy E. Thompson. Materials Used i/i Manufactures: 1919, 
Bureau of the Census, 1933, p. 4. Value added by manufacture data estimated from 
Charles A. Bliss, The •Structure of Manufacturing Production, New York, Xational 
Bureau of Economic Research, 1939, pp. 45-53; and Census of Manufactures, 1919, 
Bureau of the Census. 

■ Does not include the following basic materials; Scrap materials amounting to 
$471,300,000, or 3.7 percent of the total cost of $12,676,000,000 listed above; unmanu- 
factured fuels amounting to $822, 085,490, or 6.5 percent; and purchased electric energy 
(generated by fuel and water power) amounting to $475,633,877, or 3.8 percent. 

Data on the bulk, or physical quantity, of materials 
consumed by manufacturing unfortunately are not 
available for all types of plants. In chapter I it was 
indicated that mines and quarries supplied eight times 
as much tonnage of materials for the economy as agri- 
culture and about six times as much as forestry, and 
that other sources supplied an almost negligible pro- 
portion. Large shares of many materials, such as 
dairy products, fruits, nuts, vegetables, eggs, fish, gold, 
silver, coal, petroleum, natural gas, sand, gravel, stone, 
and fuel wood, counted into the calculations shown on 
jiage 10, do not enter into the manufactured product 
because they are consumed directly. In general, the 
proportion so used is somewhat smaller for minerals 
and for forestry products than for agricultural jirod- 
ucts. There are, of course, numerous factors besides 
cost and weight connected with materials that in- 
fluence the location of manufacturing plants. Perish- 
ability of fruits and vegetables, for example, forces the 
location of canning and jireserving close to the source 
of supply, and the marked loss of bulk of copper, lead, 
and zinc ores in the smelting pi-ocess has a similar 
effect. 

Relation of Cost of Materials to 
Value of Manufactured Products 

During 1939 the products of manufacturing indus- 
tries according to returns made by manufacturers to 
the Bureau of the Census were valued at approxi- 
mately $56,828,800,000. To manufacture the various 
products, the establishments used materials, supplies, 
fuels, i^urchased electric energy, and contract work 
aggregating approximately $.32,118,200,000. These costs 
were 56.5 percent of the value of the products. 



128 



National Resources Planning Board 



The gross figures for value of products and for the 
cost of all kinds of materials include a considerable 
amount of duplication because establishments in a given 
industry often use as materials the finished or semi- 
finished products of other establishments in the same 
or another industry. In 1929 the Bureau of the Census 
calculated a figure to represent the net value of prod- 
ucts manufactured; that is, a figure which excluded 
duplications. The net value of product was approxi- 
mately two-thirds of the gross value. Similar compu- 
tations were made by the Bureau of Foreign and 
Domestic Commerce for each census year from 1899 
through 1929.' In this series the net value of products 
varied from 60.2 to 68.7 percent of the gross value; 
the low proportions were obtained for the 1919 and 
1921 census years. Calculations of the same type made 
by the Bureau of the Census for the costs of all kinds 
of materials used in manufacturing during 1929, showed 
that the net value of raw materials was approximately 
one-third of the gross value of all materials reported.^ 

After determining the net value of products and net 
cost of materials in manufacturing for 1929, the Bureau 
of the Census could then allocate the net value of manu- 
factured products among the component cost items. 
Such statistics, presented in Table 2, show that the cost 
of raw materials is one of the most important expense 
items in manufacturing. 



area the second lowest, and the East North Central 
area (Ureat Lakes States) the third lowest (table 3). 
These three areas constitute the major manufacturing 
region of the country. 

There is less geographic concentration of cost of 
materials than of value of products or value added by 
manufacture. In other words, the areas that specialize 
most in manufacturing tend to add the greatest pro- 
portion of value to the product. The location of 
manufacturing in such areas is less determined by 
materials than it is in areas with less concentration 
of manufacturing. Furthermore, industry there con- 
sumes a proportionately greater share of semimanufac- 
tures compared to raw materials. 

The unduplicated outlays on materials in the prin- 
cipal manufacturing states is relatively much lower 
than is suggested by the above data on all materials, 
for in those States is found the greatest multiple 
counting of materials in the census tabulations. States 
in the manufacturing belt, which use large quantities 
of semimanufactures, have a gi'eater spi'ead between 
the cost of raw materials and the value of finished 
products than do states outside this area of intensive 
manufacturing. Declining relative cost of materials, 
and very likely also declining orientation of location 
about materials, are associated with increasing concen- 
tration of industry. 



Table 2. — Distribution of net value and of gross value of manu- 
factured products among component cost items, 1929 



Cost item 


Percent of 

total 
net value ' 


Percent of 

total 
gross value 


Total value 


100.0 

8.8 
24. -4 
30.4 



2.7 


33.7 


100.0 




6.0 


Wages 


16.6 


Cost of raw materials and imported semimanufactures ' 

Cost of domestic semimanufactures - . _ . 


20.6 
31.5 


Cost of unmanufactured fuels __ _. 

Cost of manufactured fuels ^ - . - - 


1.8 
.8 


other expenses, interest, and profits. .. . 


22.8 







Source: Tracy E. Thompson, MateriaU Vaed in Mantifuctures: J929, Bureau of the 
Census. 

1 The net value of products was determined by eliminating duplicatini? of products 
of one industry used as materials by another. 
- Principally derived products of petroleum and coal. 

Regional Variation of the 
Cost of Materials 

The ratio of cost of materials (broadly defined to in- 
clude fuel and other related items) to value of prod- 
ucts shows an inverse variation geographically with 
the degree of concentration of manufacturing. The 
New England area shows the lowest ratio of cost of 
materials to values of products, the Middle Atlantic 



• Commerce Yearbook, J9S2, United States Department of Commerce, 
p. 92. 

' Tracy E. Thompson, Materials Vsed in Manufactures, 1919, Bureau 
of the Census, 1933. 



Probable Influence of Materials 
on Location of Industry 

Sufficient has been said about materials to suggest 
a number of generalizations concerning their influ- 
ences on location of industry. Other things being 
equal, their locational pull is likely to vary according- 
to: 

1. The proportion of total expenses which they oc- 
casion in manufacture. 

2. The combination of materials in the manufactur- 
ing process, that is, the importance of one commodity, 
or at most, two or three commodities, as opposed to 
a variety of materials. 

3. The necessity of processing materials in sequence 
or in fixed successive stages of production. 

4. The degree of specialization of materials required 
in particular industries. 

5. The degree of impracticability of using substitutes. 

6. The degree of perishability, and the difficulty of 
protecting materials against deterioration. 

7. The loss in weight or bulk which accompanies the 
processing of materials ; and as a corollary : 

8. The expense or effort required for transporting 
materials compared to that for the products made from 
them. 



Industrial Location and National Resources 



129 



Table 3.^ — Amount and percent distribution of the cost of materials and of the value of products in raw-material-consuming and in semi- 
manvfactured-material-consuming industry groups for selected geographic areas in the United States, 1939 





Cost of materials In manufacturing industry groups i 


Geographic area 


Millions of dollars 


Percent of United States total 


Percent of total in each 
industry group 


Ratio of cost of materials to value 
of products 




All 
industries 


Raw 

material 
consumers ' 


Semi- 
manufac- 
turing 
consumers ' 


All 
industries 


Raw 

material 
consumers 


Semi- 
manufac- 
turing 
consumers 


Raw 

material 

consumers 


Semi- 
manufac- 
turing 
consumers 


All 
Industries 


Raw 

material 
consumers 


Semi- 
manufac- 
turing 
consumers 




32. 160 
20.925 
11,235 
2.463 
8.684 
9,778 


11,682 
5,215 
6,476 
676 
2,175 
2,364 


20,478 
15,710 
4,759 
1,787 
6.509 
7,414 


100.0 
65.1 
34.9 
7.7 
27.0 
30.4 


100.0 
44.6 
55.4 
6.8 
18.6 
20.3 


100.0 
76. 7 
23.2 
8.7 
31.8 
36.2 


36.3 
24.9 
57.6 
27.4 
25.0 
24.2 


63.7 
76.1 
42.4 
72.6 
75.0 
75.8 


56.6 
54.4 
61.2 
60.3 
54.1 
65.7 


70.8 
68.8 
72.6 
57.7 
68.8 
72.7 


60.8 


14 industrial States ' 


60 8 








48.0 


Middle Atlantic 




East North Central 


51 8 














Value of products in manufacturing industry groups ' 




Millions of dollars 


Percent of United States total 


Percent of total in each 
industry group 


Ratio of value added by manufacture 
to value of products 


Geographic area 


AU 
industries 


Raw 

material 

consumers • 


Semi- 
manufac- 
turing 
consumers ' 


All 
industries 


Raw 
material 
consumers 


Semi- 
manufac- 
turing 
consumers 


Raw 

material 

consumers 


Semi- 
manufac- 
turing 
consumers 


AU 
industries 


Raw 

material 

consumers 


Semi- 
manufac- 
turing 
consumers 


United States --, . 


66,843 
38,491 
18,352 
4,892 
16,039 
17,560 


16,494 

7,585 
8,912 
1,171 
3,163 
3,251 


40, 349 
30.906 
9,440 
3.721 
12,876 
14, 309 


100.0 
67.7 
32.3 
8.6 
28.2 
30.9 


100.0 
4«.0 
64.0 
7.1 
19.2 
19.7 


100.0 
76.6 
23.4 
9.2 
31.9 
36.5 


29.0 
19.7 
48.6 
23.9 
19.7 
18.5 


71.0 
80.3 
61.4 
76.1 
80.3 
81.6 


43.4 
46.6 
38.8 
49.7 
45.9 
44.3 


29.2 
31.2 
27.3 
42.3 
31.2 
27.3 


49 2 


14 industrial States ' 


49.2 


Remainder of Nation 


49 6 




62 


Middle Atlantic 


49.4 


East North Central 


48 2 







Source of value figures: Census of Manufactures, t9S9. 

' The manufacturing industries have been divided into raw-material-consuming and semimanufactured-material-consuming groups according to the predominant type of 
materials used in each industry. An industry was designated as a raw-material consumer if more than 50 percent of its expenditures for materials were for raw materials. Further 
description of the groups and a listing of the raw-material-consuming industries are found on pp. 133-136. 

' The amounts of the cost of materials and of the value of products for the raw-material-consuraing and for the semimanufactured-material-consuming industry groups are 
partially estimated because statistics for some industries in each State were not published separately by the Bureau of the Census in order not to reveal operations of individual 
establishments The amounts included in the "all other industries" category was allocated, for each State, between the raw-material-consuming and the semimanufactured-ma- 
terial-consuming groups in proportion to the given statistics. 

' The 14 industrial States comprise the New England States: Coimecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont; the Middle Atlantic States: 
New Jersey, New York and Pennsylvania; and the East North Central States: Illinois, Indiana, Ohio, Michigan, and Wisconsin. 



9. The extent to which materials are concentrated 
commercially in certain areas, compared to the dis- 
tribution of effective markets foir their products. 

10. The variety of uses which may be made of the 
materials and their products. 

Examination shows that most of these qualities are 
more likely to attach to raw materials than to semi- 
manufactured goods. "Wliich of these factors controls 
when they are in conflict (as often happens) depends 
on a variety of circumstances. When they reinforce 
each other, their weight becomes still more compelling. 

Data for selected industries will be examined in the 
following paragraphs for confirmation, or refutation, 
of the foregoing principles. 

Cost of Materials for Industry Groups 

Considering gross values of products and materials, 
which include the amounts spent for semimanufac- 
tured materials at various stages, the cash outlay for 
materials of all kinds is the largest single item of cost 
represented in the gross value of products for nearly 
all industry groups. This fact is shown in Table 4 
which gives the percent of the cost of materials to the 
value of products for manufacturing industry groups 

414788 — 43 10 



in 1939. The proportionate costs of materials are of 
varying importance. Industry groups in which the 
cost of materials is of greatest significance are those 
for food and kindred products, tobacco manufactures, 
products of petroleum and coal, nonferrous metals and 
their products, and automobile and automobile equip- 
ment industries. In these groups the cost of materials 
to manufacturers represents more than 65 percent of 
the gross value of their products. Some of the in- 
dividual industries within these groups show this pro- 
portion to be even higher. Examples are oven coke 
and coke-oven byproducts, petroleum refining, primary 
smelting and refining of nonferrous metals, cigarettes, 
canned and dried fruits and vegetables, and cane-sugar 
refining. It will be seen later that it is among such 
industries that there is the greatest tendency to locate 
processing factories near the sources of raw materials. 
Table 4 also shows that printing and publishing, 
stone, clay, and glass, machinery, electrical machinery, 
and miscellaneous industries use materials which con- 
stitute a relatively low proportion of their value of 
products. Tj'pical examples of individual establish- 
ments in this category are in the industries for photo- 
engraving; photographic apparatus, materials, and 



130 



National Resources Planning Board 



projection equipment; printing and publishing of 
periodicals; costume jewelry; electrical appliances; 
electrical measuring instruments; flat glass; glass con- 
tainers ; industrial machinery ; machine tools ; pottery ; 
statuary and art goods; and machine and hand typeset- 
ting. In such industries intricate hand or machine 
workmanship on relatively inexpensi-ve materials fre- 
quently accounts for the wide margin between cost of 
materials and value of products. It should be expected 
that establishments in these industries may locate with 
little regard to sources of materials, for other factors, 
such as markets and supply of skilled labor are more 
important. 

By far the greatest number of industries use ma- 
terials costing between 45 and 65 percent of the value 
of products manufactured. Industries included in this 
typical range generally use a wide variety of materials, 
chiefly semimanufactured products purchased from 
other firms, and a large number manufacture a long 
line of related products which are sold at relatively high 
values. 

Relation of Cost of Materials to Other 
Cost Items for Selected Industries 

Additional information confirming the importance of 
expenditures for materials is available from the indus- 
trial corporation reports of the Federal Trade Com- 

Table 4. — Value of products, cost of all kinds of materials, and 
ratio of cost of materials to value of products, hy industry 
groups, 1039 

[Millions of dollars] 



Industry group 



All industry groups 

Food and kindred products 

Tobacco manufactures 

Textile-mill products and other fiber manufac- 
tures 

Apparel and other finished products made from 

fabrics and similar materials 

Lumber and timber basic products 

Furniture and finished lumber products 

Paper and allied products 

Printing, pubhshing, and allied industries 

Chemicals and allied products 

Products of petroleum and coal 

Rubber products 

Leather and leather products _ 

Stone, clay, and glass products 

Iron and steel and their products, except ma- 
chinery 

Nonlerrous metals and their products -.. 

Electrical machmery 

Machinery, except electrical 

Automobiles and automobile equipment. 

Transportation equipment except automobiles. 
Miscellaneous indiistries _ 



Value 

of 
prod- 
ucts 



56,843 



10, 618 
1,322 

3,931 

3,325 
1,122 
1,268 
2,020 
2,578 
3,734 
2,954 
902 
1,389 
1,440 

6,592 
2,573 
1,727 
3,254 
4,048 
883 
1,163 



Cost of ma- 
terials, sup- 
plies, fuels, 
purchasetl 
electric ener- 
gy, and con- 
tract work 



' 32, 160 



7,062 
972 

2,109 

1,944 
504 
641 

1,150 
812 

1,854 

2,279 
496 
806 
529 

3,636 

1,749 

725 

1,28S 

2,725 

411 

469 



Percent 
cost of ma- 
terials is of 
value of 
products 



66.1 



66.5 
73.5 

53.7 

58.5 
44.9 
50.6 
66.9 
31.5 
49.7 
77.1 
55.0 
68.0 
36.7 

55.2 
68.0 
42.1 
39.5 
67.3 
46.6 
40.3 



Source of amounts: Census of Manufactures, 19S9. 

1 Consists of $30,255,000,000 for materials and supplies, $850,000,000 for fuels' 
$40.'>,01M),000 for purchased electric energy, and $589,000,000 for commission and con- 
tract work. 



missions. Figure 56 ^ shows the proportion of total 
sales distirbuted among various operating expenses 
and profits for selected corporations. The direct 
materials costs are the largest expense items repre- 
sented in the total sales for nearly all of the selected 
corporations. Table 5 shows the percent distribution of 
total costs into its component production, trading, and 
administrative costs for selected manufacturing cor- 
porations in 1939. 

The statistics in this table were reported by the Fed- 
eral Trade Commission for the principal corporations 
in each of the selected industries. The cost of direct 
materials is the largest expense item represented in the 
total costs for nearly all of the selected corporations. 
There are, however, several significant exceptions. 
Corporations in the firearms and ammunition ; electrical 
machinery; machine tool and other metal working ma- 
chinery, accessories, and machinists' precision tools; 
saws, files, and hand tools; and office and store ma- 
chines industries reported greater expenses for wages 
and salaries. These industries are engaged in very 
skilled manufacturing processing of relatively inex- 
pensive materials. Thus, labor costs and even selling 
expenses should be expected to be large items for 
their high valued products. In the table the cost of 
indirect materials such as fuels, purchased power, and 
supplies probably form the greatest proportion of the 
item, "other j^roduction costs and expenses." Corpora- 
tions in the printing and publishing of books and in 
the perfumes, cosmetics, and other toilet preparations 
industries reported greater expenses for selling and 
advertising activities. In these two industries proc- 
essing is done on materials with relatively little labor 
cost to manufacture products that are of high value 
compared to their basic materials. Corporations in the 
malt liquors and in the cigars, cigarettes, chewing and 
smoking tobacco, and snuff industries reported greater 
expenses for general office and other costs. In these 
cases taxes are the most important item. 

Note that of all the exceptions where the cost of 
direct materials is not the largest expense item, only 
the tobacco manufacturing industries are designated in 
the table as raw-material-consuming industries. Gen- 
erally it is to be expected that industries performing 
only one stage of manufacture should show a higher 
ratio of cost of materials and that industries carry- 
ing materials through several stages should show a 
lower ratio. In succeeding paragraphs a finer analy- 
sis of all materials, both direct and indirect, is used 
as a basis for classifying industries as raw-material- 
consuming and as semi-manufactured-material-con- 
summg industries. 



3 From Federal Trade Commission, Summary of Inditstriai C<orporation 
Reports. lfi!,l, p. 7. 



Industrial Location and National Resources 



131 



PERCENT DISTRIBUTION OF TOTAL SALES INTO COMPONENT OPERATING EXPENSES AND PROFITS FOR 

SELECTED MANUFACTURING CORPORATIONS, 1939 















Social 
















AM Taiaa. 


Sacurltr 


Adalnlatratlve, 














except IncoM 


and 


General Office, 


Net Profit 




Production 








Taiea and Social 


Penalon 


Research. 


frtsm 


Haterials- 


H«g«» and 


Oe»r«cl*tlon, 


Other Costa- 


Selllns 


Security 


Fund 


Uncotlectabla 


Hanulacturing 


Olrect 


Salaries 


Etc. 


Mot Listed 


Eipentea 


WvertI lifts Fay«ent» 


PajrMnta 


Account!, Etc. 


and Trading 



V'./^/'^'../M 






Industry and Nunber of Corporations Covered 




Beet Sugar, 5 

Beverage (Hon Alcoholic), 6 

Biscuit and Cracker, 4 

Bread and Baker; Products, 7 

Cane Sugar, 7 

Cereal Preparations, 8 

Confectionery, 11 

Corn Products, 5 

Flour Milling (Fiscal Tear 1940), 9 

Food Specialty, 4 

Fruit and Vegetable Canning, 10 

Malt Beverage Brewing, 21 

Milk and Milk Products, 8 

Cigarette and Tobacco Products, 6 

Cotton Textiles, 33 

Knit Goods, 17 

Silk, 5 

Textile Dyeing and Finishing, 19 

Wool Carpet and Rug, 7 

Woolen and Worsted, 22 

Hat and Cap, 5 

Men's and Boys' Cotton, Leath. and Misc. Garm,19 

Men's, Youths' and Boys' Clothing, 10 

Lumber and Timber Products, 29 

Furniture, 14 

Match. 7 

Paper and Pulp, 13 

Book and Magazine Publishing, 9 

Chemicals (Industrial), 13 

Drugs and Medicines, 17 

Fertilizer 6,* 

Paint and Varnish, 9 

Perfume and Cosmetics, 8 

Rayon and Allied Products, 7 

Soap, Cottonseed Prod, and Cooking Fats, 10 

Coke C)ven Products, 4 

Petroleum Producing and Refining, 8 

Rubber Products, 5 

Leather Boot and Shoe, 16 

Tanned, Curried and Finished Leather, 15 

Cement, 14 

Clay Products (Other Than Pottery), 6 

Glass and Glassware, 6 

Gypsum, Asbestos Prod, and Hoof Coating, 10 

Bolt,' Nut, Rivet and Screw Machine Prod., 7 

Firearm and Ammunition, 4 

Gray-Iron and Malleable-Iron Castings, 4 

Hardware, 14 

Heating and Cooking Appar. (Ex. Elect.), 8 

Plumbers Supplies, & 

Saw, File and Hand Tool, 6 

Steel Castings, 6 

Steel Works and Rolling Mill Products, 6 

Tin Can and Tinware, 4 

Copper, 6 

Lead and Zinc, 6 

Silverware and Plated Ware, 8 

Electrical Machinery and Apparatus, 19 

Radio and Phonograph, 7 

Agricultural Machinery and Tractors, 7 

Business Machines and Typewriters, 8 

Cranes, Dredging, Excav. and Road Bid. Mach., 11 

Domestic Laundry Equipment, 8 

Engine, Turbine, Waterwheel and Windmill, 7 

Machint Tool, 6 

Machine Tool Acces. and Mach. Precis. Tool, 6 

Machinery (Not Elsewhere Classified), 11 

Pump, Pumping Equip, and Air Compressor, 4 

Refrig. Equip, and Air Conditioning Unit, 5 

Textile Machinery and Sewing Machine, 12 

Automobile Parts and Accessories, 17 

Motor Vehicles, 8 

Aircraft, 7 

Railroad Equipment, 9 

Shipbuilding, S 



■v . v^'i' V . 



TTT 



' I , '!" 



Jl SX 



EEEZIEZZIi: 



■ 'I ■■L 



' :V:V: : .v; v , V . ' .':.V.| S: 



am 



f — r — ^"n;^ 

"[[w r~^ 



I!M, 



3j: 



I - tgJiSi!^- " 



• ' I 'T i' 



XL^SS; ; 



nzzc 



-Jii^i^yiJd i 






SEE 



::^Mi 



'x::'\ 



'.,.:, I ::.:, i 



3^^ 



1 !^~ 




'For FtrtHil.r Corpor.ttonS. the Solid Str Rtprtienti Hjtar lal t-OI rect tnd Production tfag«> and S.l.riti Coabln.d 



Figure 56 



132 



National Resources Planning Board 



Table 5. — Ratio of various production, trading, and administrative costs to total costs for selected industries, 1939 
[Industries ranked according to cost of direct materials in raw-material-consuming and in semimanufactured-material-consuming groups] 



Industry ' 



Coverage 



Number of 
corpora- 
tions 



Percent sales 
are of all 
industry 
products 



Production costs (percent) 



Materials 
cost— direct 



Wages and 
salaries 



Other pro- 
duction 
expenses 



Trading and administrative costs (percen ) 



Finished 
goods pur- 
chased for 
resale 



Selling and 

advertising 

expenses 



General office 
and other 
expenses 



11. 
12. 
13. 
14. 

15. 
16. 
17. 
18. 
19. 
20. 
21. 
22. 
23. 

24. 

25. 



27. 
28. 
2S. 
30. 
31. 
32. 
33. 
34. 
36. 
36. 
37. 



Raw-mat€rial-consuming industry 

Flour and other grain-mill products 

Milk and milk products * — 

Leather: tannel, curried, and finished 

Cereal preparations and rice cleaning and polishing 

Primary smelting and refining, lead and zinc - 

Woolen and worsted manufactures — 

Corn sirup, corn sugar, corn oil and starch 

Silk manufactures,. 

Canned and dried fruits and vegetables (including canned soup) , 
Soap and glycerine; cottonseed oil, cake, meal, and linters; cook- 
ing and other edible fats and oils '- 

Paper and pulp- _-. 

Cotton manufactures 

Food specialties* 

Primary smelting and refining, copper 

Silverware and plated ware.- 

Oven coke and coke-oven byproducts 

Cigars, cigarettes, chewing and smoking tobacco, and snutf 

Cement 



Semimanufactured-maleriat-comumin) industry 

Cane sugar refining 

Tin cans and other tinware • 

Fertilizers _._ _ __,' 

Motor vehicles, etc 

Paints, varnishes and lacquers 

Matches - 

Dyeing and finishing cotton, rayon, silk and linen textiles 

Men's and boys' furnishings, work and sport garments 

Shipbuilding and ship repairing - 

Motor vehicle bodies, parts, and accessories and automobile 

trailers , 

Aircraft and parts, including aircraft engines 

Agricultural machinery including tractors 

Railroad equipment 

Steam engines, turbines, water wheels, and internal combustion 

engines 

Gypsum and asbestos products and roof coating (except paint).. 

Furniture ' 

Steel works and rolling mills 

Nonalcoholic beverages. 

Carpets and rugs, wool (other than rag) 

Knit goods 

Bread and bakery products. 

Rubber products 

Construction and similar machinery (except mining and oil- 
field machinery and tools) 

Men's and boys' tailored clothing.. 

Bolts, nuts, washers, and rivets — made in plants not operated 

in connection with rolling mills 

Refrigeration machinery and equipment and complete air-con- 
ditioning units, including domestic refrigerators 

Radios, radio tubes, and phonographs 

Hats, felt and straw, except millinery 

Machinery * b 

Gray-iron, semisteel, and malleable iron castings 

Chemicals * 

Pumping equipment and air compressors 

Drugs and medicine (including drug grinding) 

Machine tools 

Footwear, except rubber... 

Flat glass and pressed or blown glassware - 

Firearms and ammunition 

Perfumes, cosmetics, and other toilet preparations 

Electrical machinery 

Machine-tool and other metal-working machinery, accessories, 
metal-cutting and shaping tools, and machinists' precision 

tools 



(') 



(') 



(') 



(') 



(') 



48.5 
16.9 
31.7 

76.5 
35.0 
92.1 
31.7 
45.0 

70.0 
23.6 
35.6 
74.7 
65.0 
67.0 
33.5 
79.2 
41.0 



71.5 
81.0 
41.1 
73.6 
36.0 

34.0 
18.1 
38.6 

11.4 
65.0 
I 
62.7 

33.3 

14.0 
18.6 
35.9 
.55.0 
17.7 
16.7 
61.2 

50.2 
14.3 

41.6 

19.6 
75.6 
38.0 
15.2 
19.0 

25.0 
58.9 
23.6 
45.3 
73.1 
65.0 
15.3 
66.6 



68.9 
65.2 
64.4 
61.2 
57.9 
64.6 
52.6 
62.3 
51.9 

50.3 
47.3 
47.2 
46.8 
33.4 
29.4 
29.3 
27.1 
26,0 



70.4 
66.1 
60.6 
59.2 
58.1 
56.4 
65.0 
60.1 
47.6 

47.4 
44.0 
43.2 
42.8 

41.1 
41.0 
40.3 
40.2 
40.1 
39.5 
38.8 
38.7 
38.2 

37.9 
37.8 

37.5 

36.7 
36.4 
36.4 
35.6 
35.3 
35.1 
34.7 
34.5 
34.0 
33.3 
33.2 
32.8 
31.6 
29.9 



29.5 



6.0 

6.3 
16.3 

3.6 
14.6 
21.8 

9.7 
23.6 
10.4 

6.2 
22.5 
27.6 

7.6 
25.0 
28.0 
23.2 

3.6 
19.7 



4.4 
14.1 
10.6 
19.6 

7.0 
14.9 
22.3 
20.2 
32.4 

21.3 
25.9 
22.1 
19.0 

26.1 
19.3 
22.1 
27.8 
4.6 
26.6 
31.2 
13.8 
18.6 

22.4 
28.0 

30.3 

20.6 
18.0 
35.2 
17.9 
29.7 
20.8 
21.5 
10.0 
28.0 
23.4 
24.8 
33.0 
6.9 
32.0 



3.1 
8.4 
10.8 
8.5 
5.3 
12.6 
14.2 
8.3 
6.1 

8.4 
10.4 
12.8 
10.2 
23.7 
5.9 
9.1 
2.3 
17.2 



5.8 
5.4 
8.3 
6.5 
7.1 
7.1 
10.1 
4.9 
9.6 

1.5.6 
12.8 
7.6 
12.3 

8.7 
9.0 
12.8 
13.0 
5.2 
14.4 
4.9 
8.2 
3.8 



12.2 

9.5 
22.7 
4.7 
11.3 
15.9 
8.0 
9.5 
7.7 
14.6 
8.2 
17.0 
6.2 
6.4 
5.2 



7.5 



(') 



6.6 
1.5 
.1 

5.7 

1.4 
0.7 
10.0 

2.0 

.2 

2.1 

6.3 

2.6 

9.1 

16.9 

.2 

1.6 



2.2 
.6 
2.2 

.3 
.8 
.4 
1.6 
8.7 


.4 
3.0 
2.6 
2.0 

.2 
4,1 
1.9 
4.0 
4.3 
1.2 
7.1 
1.9 
6.8 

5.5 
2.3 

1.8 

9.7 
2.9 
1.6 

12.7 
.9 
9.4 
8.5 
1.6 


14.7 
3.3 
.7 
3.2 
5.6 



11.6 

11.0 
3.8 

18.3 
4.3 
4.3 
9.9 
6.4 

13.1 

21.4 
6.3 
3.5 

20.9 
2.0 

17.1 
6.8 
8.4 

12.0 



2.1 
3.9 
7.9 

5.8 
17.4 
13.7 
3.6 
9.6 
1.0 

4.8 
2.5 
13.7 
3.7 

11.7 
16.1 
13.2 
3.3 
31.6 
7.7 
9.9 
28.8 
19.9 

16.4 
19.7 

6.6 

14.8 

9.3 

13.6 

11.9 

4.4 

9.4 

15.9 

32.9 

11.3 

13.9 

9.5 

10.1 

34.7 

13.0 



6.0 
8.6 
4.6 
8.4 

12.2 
6.7 

12.2 
8.8 
8.5 

11.7 
14.3 
6.8 
9.2 
13.3 
10.6 
16.7 
68.4 
23.6 



IS. I 
9.9 

10.5 
9.7 
9.6 
8.6 
7.4 

a6 

9.5 

10.5 
11.8 
10.9 
20.2 

12.2 
11.6 
9.7 
11.7 
14.3 
10.6 
8.1 
8.6 
12.7 

10.2 
7.2 

11.6 

8.7 
10.7 

8.6 
10.7 
13.8 
17.3 

9.9 
13.3 
12.1 

6.6 
12.2 
17.2 
18.2 
14.3 



10.2 



Source: Compiled from the Industrial Corporation Reports of the Fec'eral Trade Commission. 



' The industry classification used by the Federal Trade Commission is in accordance with the Standard Industrial Classification prepared by the Central Statistical Board. 
Smce this classification is comparable with that used by the Bureau of the Census, the industry titles in this table are those designated by the Census of Manufactures, 19S9 ex- 
cept m the few cases noted. 

' The milk and milk products industry may include one or more of the following industries designated by the Bureau of the Census: creamery butter, cheese, condensed 
and evaporated milk, ice cream and ice^, special dairy products. 

' The total amount of sales for the covered corporations exceeded the value of products for the entire industry as reported by the Bureau of the Census. The explanation 
for this is that data for the Federal Trade Commission Industrial Reports pertain to the entire operations of corporations, while data for the Bureau of the Census are by estab- 
lishments and sometimes the operations of some plants of a given corporation have undoubtedly been reported in different industry classifications. Thus such discrepancies 
occur in those instances in which the corporation operates a number of plants manufacturing different products and also in instances where the corporation operates plants in 
foreign areas. In the latter case the Bureau of the Census does not receive reports from foreign establishments of domestic corporations. 

* Less than 0.05 percent. 

* Not elsewhere classified. 

* The food specialities industry may include one or more of the following industries designated by the Bureau of the Census: Baking powder, yeast, and other leavening com- 
pounds; chocolate and cocoa products; salad dressings; quick-frozen foods; food preparations (n. e. c). 

' The furniture industry includes the manufacture of household, office, public building, and professional furniture. 

' The machinery, n. e. c, industry may include one or more of the following industries designated by the Bureau of the Census: Construction and similar machinery; oil- 
field machiner,y and tools; mining machinery and equipment; food-products machinery; woodworking machinery; paper-mill, pulp-mill, and paper-products machinery; special 
industry machinery, not elsewhere classified; elevators, escalators, and conveyors; cars and trucks, industrial and mining; blowers, exhaust and ventilating fans; stokers, me- 
chanical, domestic and industrial machinery, not elsewhere classified; vending, amusement, and other coin-operated machines: commercial laundry, dry-cleaning, and pressing 
machines; metal-working machinery and equipment, not elsewhere classified. 



Industrial Location and National Resources 



133 



Table 5. — Ratio of various production, trading, and administrative costs to total costs for selected industries, 1939 — Coutiuued 



Industry 



Coverage 



Number of 
corpora- 
tions 



Percent sales 
are of all 
industry 
products 



Materials 
cost— direct 



Production costs (percent) 



Wages and 
salaries 



Other pro- 
duction 
expenses 



Trading and administrative costs (peroent) 



Finished 
goods pur- 
chased for 
resale 



Selling and 

advertising 

expenses 



General otiice 
and other 
expenses 



41. Hardware' - 

42. Heating and cooking apparatus (except electric) ' 

43. Lumber and timber products - - 

44. Textile machinery and sewing machines, domestic & industrial 

45. Vitreous-china plumbing fixtures, enameled-iron sanitary ware, 

and other plumbers supplies, except pipe-- 

46. Printing and publishing books and periodicals 

47. Saws, tiles, and tools, (except edge tools and machine tools) 

48. Malt liquors --- 

49. Office and store machmes »-.. - 



(») 



57.0 
27.2 
18.5 



(') 



25.0 
28.0 
44.4 



28.2 

28.1 
26.0 

25.7 
25.0 
22.9 
17.8 
10.8 



2.5.0 
21.9 
31.4 

16.4 

20.3 
9.1 

28.4 
9.0 

25,8 



14.8 
10.0 
19.3 
5.5 

10.2 
23.0 
20.7 
12.4 
11.1 



(') 



9.8 
11. S 
8.9 

5.8 

24.3 
4.3 
1.6 

1.8 



9.9 
17.5 

5.5 
36.7 

9.7 
28.3 
13.0 
15.3 
31.7 



11.9 
10.9 
15.8 



9 8 
10.3 
13.5 
45.5 
18.8 



See footnotes on preceding page. 

Raw-Material-Consuming vs. Semimanufactured- 
Material-Consuming Industries 

The casual impression is that almost every indus- 
try uses large amounts of raw materials. This is not 
true even if unmanufactured fuels such as coal and 
natural eas were considered as raw materials for munu- 
facture. There are many individual manufacturing 
establishments, particularly those in printing and 
publishing, leather products, rubber products, and 
transportation equipment industries, that use no raw 
materials but only semimanufactured or semifinished 
materials. If unmanufactured fuels are not counted as 
raw materials for manufacture, many more industries 
may be classified as using no raw materials. 

Wlien considering sources of raw matei'ials for in- 
dustry and their influence un the location of manufac- 
turing establishments, it is pertinent to determine the 
extent to which industries may be concerned with the 
different types of materials. 

Obviously, all manufacturing industries are con- 
cerned with some type of materials. Service industries 
and manufacturing industries using predominajitly 
semimanufactured materials are affected only indi- 
rectly or not at all by raw materials. In these cases 
the industrial establishmeirt locates primarily for rea- 
sons other than those concerned with materials, be- 
cause producers of semimanufactured materials are 
usually very versatile and adept at making their prod- 
ucts available over wide areas. ^ There are, however, 
some exceptions. For example, steel castings estab- 
lishments tend to locate near iron and steel works from 
which they derive their supplies of semimanufactured 
iron and steel. In this example and for many other 
uses of semimanufactured materials, the important fact 
is that, if there is some relation between the location 
and the raw materials used, it is an indirect relation 
because the user of the semimanufactures will tend to 
locate near the industry which processes the raw mate- 



rials. The location problems in connection with mate- 
rials are primarily tliose concerned with raw materials. 

Statistics of material costs, unfortunately, do not 
show the value of raw materials used in each industry. 
The Bureau of the Census published an analytical 
study of materials in industry as reported in 1929.' In 
that study manufacturing industries were divided into 
two groups according to the predominani character of 
the materials used; namely, raw-material-consuming 
industries and semimanufactured-material-consuming 
industries. 

This is the most recent study of the type available. 
The information is still useful, for the basic character 
of industries with respect to use of raw and semimanu- 
factured materials has not changed radically since 
1929. It is true that there have been changes in in- 
dustry since 1929, but the definitions and classifications 
of industries for the Census of Manufactures for 1929 
and for 1939 show fundamentally the same industrial 
structure from a materials and products point of view. 
Some of the findings of the 1929 study of materials 
used in manufactures are, therefore, very appropriate 
for this analysis of materials and location. Less than 
21 percent of the industries as reported by the Bureau 
of the Census for 1929 used over 83 percent of the 
raw materials consumed in manufacturing. Of the 
326 industries reported, only 68 were considered as 
predominantly raw-material-consuming industries, and 
the remaining 2.58 were classified as semimanufactured- 
material-consuming industries. The raw-material-con- 
suming industries were defined as those in whicli more 
than 50 percent of their expenditures for materials were 
for raw materials. The 68 industries classified by 
industry groups were as follows: 



Food and kindred products : 

1. Butter. 

2. Canning and preserving: Fish, 

shrimps, oysters, and clams. 



crabs, 



' See chapter 18. Price PolUHet, pp. 302-818. 



'Tracy B. Thompson, op. cit. 



134 



National Resources Planning Board 



3. Canning and preserving: Fruits and vege- 

tables; pickles, jellies, preserves, and 
sauces. 

4. Cereal preparations. 

5. Clieese. 

6. Chocolate, cocoa products, except candy. 

7. Coffee and spice, roasting and grinding. 

8. Condensed and evaporated milk. 

9. Corn sirup, corn starch, corn oil, and starch. 

10. Feeds, prepared for animals and fowls. 

11. Flour and other grain-mill products. 

12. Ice cream. 

13. Malt. 

14. Meat packing, wholesale. 

15. Peanuts, walnuts, and other nuts, processed 

or shelled. 

16. Poultry killing, dressing, and packing, 

wholesale. 

17. Rice cleaning and polishing. 

18. Sugar, beet. 

19. Sugar, cane, except products of refineries. 

Textiles and their products : 

20. Cordage and twine. 

21. Cotton goods. 

22. Felt goods, wool, hair, or jute. 

23. Haircloth. 

24. Hat and cap materials, men's. 

25. Jute goods. 

26. Linen goods. 

27. Mats and matting, grass and coir. 

28. Silk and rayon manufactures. 

29. Upholstering materials. 

30. Woolen goods. 

31. Baskets and rattan and willow ware, except 

furnitui'e. 

32. Cork products. 

33. Excelsior. 

34. Turpentine and rosin. 

Paper and allied products : 

35. Pulp (wood and other fiber). 
Chemicals and allied products: . 

36. Bone black, carbon black, and lampblack. 

37. Grease and tallow, not including lubricating 

greases. 

38. Liquors, vinous. 

39. Cottonseed oil, cake, and meal. 

40. Linseed oil, cake, and meal. 

41. Essential oils. 

42. Vegetable oils, not elsewhere classified. 

43. Salt. 

44. Wood distillation, charcoal manufacture. 



Products of petroleum and coal: 

45. Coke, not including gas-house coke. 

46. Gas, manufactured, illuminating and heat- 

ing. 

47. Petroleum refining. 

Leather and its manufactures: 

48. Leather — tanned, curried, and finished. 
Stone, clay, and glass products: 

49. Cement. 

50. Clay products (other than pottery) and non- 

clay refractories. 

51. Graiihite, ground and refined. 

52. Lime. 

53. Marble, granite, slate, and other stone 

products. 

54. Minerals and earths, ground or otherwise 

treated. 

55. Pottery, including porcelain ware. 

56. Wall plaster, wall board, insulating board, 

and floor composition. 

Iron and steel and their products except machinery : 

57. Iron and steel, blast furnaces. 
Nonferrous metals and their products: 

58. Silversmithing and silverware. 

59. Smelting and refining, metals (other than 

gold, silver, or platinum), not from ore. 

60. Smelting and refining, zinc. 
Miscellaneous industries •: 

61. Brooms. 

62. Cigars and cigarettes. 

63. Foundry supplies. 

64. Fur goods. 

65. Hair work. 

66. Ivoi-y, shell, and bone work, except buttons, 

combs, or hairpins. 

67. Lapidary work. 

68. Tobacco — chewing and smoking, and snuflf. 

Establishments classified among these 68 industries 
are likely to feel the pull toward sources of raw ma- 
terials. Even though these industries were designated 
as the principal consumers of raw materials because 
more than half their expenditures for materials were 
for raw materials, they do not include all the industries 
that consume large amounts of raw materials. In- 
poi'tant raw-material consumers not included among 
the 68 industries are glass factories, sawmills, veneer 
mills, and cooperage stock mills. One reason that 
some of these industries are not on the above list is 
that in addition to raw materials, they consume large 
amounts of semi-manufactures with the result that the 
cost of raw materials constitutes less than half of the 



Industrial Location and National Resources 



135 



total expenditures for materials.'' The distribution 
of the cost of materials among raw materials and 
semimanufactures in any industry depends to some 
extent on the plan of industry classification; the Bu- 
reau of the Census generally follows the practice of 
industry in distributing processes among specialized 
lines of manufacture.' 

The significant feature of the 68 raw-material-con- 
suming industi'ies is not only that they spend large 
sums of money for raw materials compared to semi- 
manufactures, but also that they consume almost all 
the raw materials entering manufacturing. Figure 57 
shows the gross value of all manufactured products di- 
vided into component cost items for the 68 raw- 
material-consuming industries and for the 258 semi- 
manufactured-material-consuming industries. Almost 
54 percent of the value of products for the 68 indus- 
tries represented expenditures for raw materials and 
only about 10 percent for purchased semimanufactures. 
Although the 68 industries produced only 28.1 percent 
of the value of all manufactured products, they con- 
sumed 83.5 percent of the total cost of raw commodities 
to manufacturing industry, 8.1 percent of the cost of 
semimanufactured commodities, and 49.0 percent of the 
cost of all fuels. 

It is important to note that this small group of in- 
dustries accounts for almost half of all the fuels and 
purchased electric energy used by manufacturing in- 
dustries. Fuels and power add relatively more in the 
initial processing stages to the value of manufactured 
products than they do in the later steps necessary for 
production of finished commodities. That is, the first 
manufacturing stages are largely the application of 
heat, light, electrical, and mechanical energj' to raw 
materials to convert them to forms useful to other pro- 
ducers. In the later stages of manufacture, fuels and 
power are used in each industry but not in such large 
amounts. The finishing operations are largely the ap- 
plication of skilled labor to semimanufactured ma- 
terials. The fact that the raw-material-consuming in- 
dustries demand large quantities of fuels and power 
complicates their location problem because many of 
them must look both to sources of their principal crude 
materials and to sources of energy. 



Table 6. — Percent distribution of value of products and of the 
cost of various kinds of materials for raw-material-consuming 
and for semimanufactured-material-consuming industry 
groups, 1929 



' In the case of sawmills, veneer mills, and cooperage stock mills the 
Census cl.issiflcation for the lumber and timber products indu-^try sup- 
plies the reason why the cost of raw materials forms such a low pro- 
portion of total expenditures for materials. In that industry planing 
mills are included along with sawmills, veneer mills, and cooperage- 
stock mills. The raw materials in the form of logs enter the sawmills 
and are converted into various lumber products, which are classified 
as semimanufactures. These products in turn become the principal 
materials for planing mills and their value as semimanufactured mate- 
rials are credite.l to tie lumber and timber industry. Since no statistics 
are available separately for sawmills, veneer mills, and cooperage stock 
mills they are classified along with planing mills by the Bureau of the 
Census as industries consuming primarily semimanufactured materials. 

'Cf. Tracy K. Thompson, 0/). cil.. p. 1.33. 





Num- 
ber of 
indus- 
tries 


Percent of all-industry total 


Industry group 


Value 
of 

prod- 
uct 


Cost of 

fuels and 

purchased 

electric 

energy 


Cost 
of raw 
mate- 
rials 


Cost of 
seml- 

manu- 
fac- 
tured 
mate- 
rials 


All industries, total 


326 


100.0 


100.0 


100.0 


100.0 






Raw-material-consumin? industries 


68 


28.1 


49.0 


83.6 


8.1 


Food and kindred products 


19 
11 
4 

1 
9 
3 

1 
8 

1 
3 
8 


11.9 
3.9 
.1 
.3 
.9 
.■). 1 
. 7 
1.4 

1.1 

.4 

2.2 


4.1 

3.5 

.1 

.7 

.9 

21.4 

.4 

6.6 

10.4 
.7 
.2 


43.6 

9.3 

.2 

.8 

3.0 

14.9 

2.3 

1.4 

3.2 
1.0 
3.8 


4.3 




1.5 


Forest products . 


(') 


Paper and paper products 


. I 


Chemicals and allied products 

Products of petroleum and coal 

Leather and its manufactures 

Stone, clay, and glass products 

Iron and steel and their products, ex- 
cept machinery 


.3 

.9 
.2 
.1 

.2 


Nonferrous metals and their products. 


.1 

.6 






Semimanufactured-material-consuming 


25S 


71.9 


51.0 


16.4 


91.9 








13 
42 

16 
9 

13 
24 
2 
3 
9 
12 

25 
20 
16 

10 
2 

42 


6.2 
9.2 
5.0 
2.4 

4.5 
4.5 

.1 
1.6 
2.0 

.8 

9.0 
4.7 
10.0 

8.6 
1.8 
2.6 


4.5 
3.0 
1.9 
3.6 

1.4 
4.5 

.2 
1.1 

.4 
1.9 

14.4 
2.8 
5.9 

2.9 

1.7 
1.1 


1.2 

3.2 

1.7 

.9 


1.4 

7.7 

.3 

1.9 

3.5 

.4 

(') 

•2 


7.3 


Textiles and their products 


12.7 


Forest products 


!i. 4 




3.2 


Printing, publishing, and allied in- 
dustries 


3.1 


Chemicals and allied products 

Products of petroleum and coal 


5.1 

.2 

1.5 


Leather and its manufactures 

Stone, clay, and glass products 

Iron and steel and their products, ex- 


3.3 
.6 

11.4 


Nonferrous metals and their products- 
Machinery, except transportation 

Transportation equipment, air, land, 


7.5 
10.5 

l.i. 1 


Railroad repair shops .. - 


2.1 




2.8 







Source: Computed from Tracy E. Thompson, op. cit. 
' Less than 0.5 percent. 

The percent distribution of the value of products, 
cost of fuels, raw materials, and semimanufactured 
materials for industry groups, divided according to raw- 
materia,l-consuming and semimanufactured-material- 
consuming industries, is shown in table 6. Three of 
the raw-material-consuming groups, namely food and 
kindred products, including 19 industries; textiles and 
their products, including 11 industries; and products 
of petroleum and coal, including 3 industries, use ap- 
proximately 68 percent of the value of all raw ma- 
terials. These 33 industries constitute about 10 
percent of the number of manufacturing industries 
listed by the Bureau of the Census. Such facts indi- 
cate great concentration in the use of raw-materials by 
industry. The 19 food-processing industries alone 
consumed 43.G percent of tlie value of raw materials. 
This group of industries is peculiar in that it also con- 
sumed 4.3 percent of the value of semimanufactured 
materials, a proportion which was more than half of 
the semimanufactured materials consumed in the 68 
raw-material-consuming industries. The explanation 



136 



National Resources Planning Board 



GROSS VALUE OF PRODUCTS AND COMPONENT 
ITEMS FOR ALL MANUFACTURES BY RAW-MATERIAL- 
CONSUMING INDUSTRIES AND BY SEMI-MANUFACTURED 
MATERIAL-CONSUMING INDUSTRIES, 1929 



$£380000000 ,,iSy''^ 



$38*^5000000 / 





RAW MflTERmiS 



68 INDUSTRIES WHICH 
CONSUME 63-5% OF ALL 
RAW MATERIALS. 

ITOTAL VALUE OF PRODUCTS 
= $19,730,045,335) 



258 INDUSTRIES WHICH 
CONSUME 91.5% OF ALL 
SEMIMANUFACTURED MA- 
TERIALS 

ITOTAL VALUE OF PRODUCTS 
= $50,704,918,108) 



SOURCE- MATERIALS USED IN MANUFACTURES: 1929 BY TRACY E. THOMPSON, 
US DEPARTMENT OF COMMERCE, BUREAU OF THE CENSUS. 

Figure 57 

of this lai'ge proportion is that the 19 food-processing 
industries produced large amounts of commodities that 
were prepared for delivery to ultimate consumers. 

The 258 industries classified as semimanufactured- 
material-consuming industries for 1929 used 91.9 per- 
cent of all semimanufactured materials, 16.4 percent 
of all raw materials, and 51.0 percent of fuels and pur- 
chased electric energy to manufacture 71.9 percent 
of the value of products (cf. fig. 57 and table 6). Al- 
most 44 percent of the value of products of these 
industries represented expenditures for semimanufac- 
tured materials and only 4 percent expenditures for 
raw materials. In table 6 it is indicated that there is 
great concentration in the use of both raw and semi- 
manufactured materials among the raw-material- 
consuming industries in the food, textile, and the 
petroleum and coal products groups. Among the con- 
sumers of semimanufactures there is no comparable 
concentration in the use of either raw or semimanu- 
factured materials. Note, however, that little or no 
raw materials are consumed in the printing and pub- 



lishing, rubber products, machinery, transportation 
equipment, and railroad repair shop industries clas- 
sified among the 258 industries. 

Figures 57 indicates that value added to materials 
forms a greater proportion of the value of products 
for semi-manufactured-material-consuming industries 
than for raw-material-consuming industries. Value 
added by manufacture constitutes 50.5 percent of the 
value of products for these industries compared with 
31.8 percent for the raw-material-consuming indus- 
tries. Wages and salaries form 25.4 percent of the 
value of products of the 258 industries whereas they 
constitute only 12.1 percent of the value for the 68 
raw-material-consuming industries. 

These diflFerences imply a gi-eater locational impor- 
tance of labor employed in the 258 industries which 
produce the complicated finished products. The char- 
acter of the work performed by the raw-material proc- 
essors requires that they employ large numbers of 
unskilled and semiskilled workers such as machine 
operators and tenders. Smce this type of labor is also 
required to a large extent by the extractive industries, 
there is a probability that at times the two fields of 
activity will compete for the available labor in a given 
area.* 

Combination of Materials 

Manufacturing industries differ widely in the vari- 
ety of materials that nmst be brought together for 
their operations. The locational influence of ma- 
terials depends in considerable part on the extent to 
which such materials are combined with other material. 
A strong locational attraction of a material in one 
area may be counteracted by an equally strong attrac- 
tion of a second required material in another area. 
In general, the greater the multiplicity of materials, 
the less influential any one of them is likely to be in 
detei'mining location. The effect of this counteraction 
might be more consideration for factors other than 
materials that yield a net advantage in the balancing 
of locational forces. It is quite possible, of course, 
that both material and nonmaterial factors will rein- 
force rather than work against each other. For ex- 
ample, the occurrence in Alabama of iron ore, coal, and 
limestone in proximity to each other and to Southern 
markets at some distance from other steel centers 
multiplies the advantages of that area for loca- 



* The probabilities are tbat in the early development of new resources, 
there was no real growth of manufacturing in the immediate area be- 
cause In such periods the extractive industries paid relatively high 
wages compared to manufacturing industries, and thus reduced the 
labor supply available there for manufacturing. This was one factor 
which, added to power, marliet, and other considerations, may have 
influenced certain industries to locate at some distance from the source 
of their raw material. 



Industrial Location and National Resources 



137 





CAPACITY AND LOCATION OF BEET SUGAR FACTORIES, 
PRODUCTION OF SUGAR BEETS BY COUNTIES, 1939. 



PRODUCING AREAS 
(PRODUCTION IN TONS) 



100,000 OR OVER 
I ■ I 50,000 - 99,999 
t;%^ 10.000 49.999 
[^:;::x;j LESS THAN 10.000 



CAPACITY OF PLANTS 
(TONS PER DAT) 

• 2.500 OR OVER 

• 1.500 - 2.499 

• 600 - 1,499 



'\ 



SO"BCtS: B«SED 0" 0*T* fRQu CC^5"S Of f-glC'LT'jqE. 1939 **0 fEBIQaw etET SH'flR CtHPtWIES. ISHO-II. fPfl'^PBLET) I'WITED STATES BtfT SlTjtft ASSQCIiTIW 



pfi[p*RED IN orncE or the nationul resoukes punning board 



Figure 58 



tion of steel plants. Such fortunate combinations are 
exceptions, however, rather than the rule. Even 
where sources of two or more materials are close, they 
are usually separated bj- some distance, whereas all of 
one material for a plant usually may be drawn from 
a localized source. 

The possible combinations of materials are almost 
infinite in number. Nevertheless, four categories are 
adequate for analysis of the most recurrent types. In- 
dustries may be grouped into: (1) those that consume 
predominantly one material; (2) those that consume 
one major material and at least several important 
minor materials; (3) those that consume predomi- 
nantly two materials; and (4) those that consume a 
variety of materials. In general raw-material-consum- 
ing industries tend to be the simpler types and the 
semimanufactured-material-consuming industries the 
more complex types. Generally, when an industry 
consumes three or more major materials the combina- 
tion becomes complex, because industries of this type 
almost always consume a retinue of minor materials 
that also have some eflFect on location. 



Combinations in Raw-Material-Consuming Industries 

One of the best examples of dominance by a single 
material is found in the beet sugar industry, in which 
plants are almost without exception located in areas 
of sugar beet production. Nearly every major sugar- 
beet producing county has one or more sugai- refineries 
(fig. 58). The perishable nature and the great reduction 
in bulk of sugar beets in the process of extraction of 
the sugar content, of course, helps to explain tliis co- 
incidence in location. The lack of requirements for 
other materials in quantity from outside areas, of 
course, may be essential for location at the source of 
supply. 

Wood pulp mills reflect a compromise between the 
source of a dominant material and a second less im- 
portant requirement, fuel and power. In the pulp 
mills outlays for wood constituted 58.4 percent of total 
expenditures for materials in 1939 (table 7). The 
location of a pulp mill in a forest area is contingent 
on the availability of fuel, power, and water at that 
site. Lacking these, the wood supplies will not be 
used, or the plant will be built at a distance especially 



138 



National Resourues Planning Board 



if low-cost water transportation for the logs is a pos- 
sibility. Fortunately water power is usually available 
in or near the forest areas to meet the needs of the 
mills. Wood pulp mills first located in New York, 
Massachusetts, New Hampshire, and Maine because of 
(1) the large supply of spruce and poplar which was 
the timber chiefly used in making wood pulp at that 
time, (2) the existence of low-cost water power nec- 
essary to operate the heavy grinding machinery, (3) 
the availability of suitable water for mixing the pulp, 
and (4) the adjacent markets for newsprint jjaper in 
Philadephia, New York, and the New England cities. 
With the growth and geographic expansion of the 
market the industry followed sources of cheap 
wood and power. Its development in Wisconsin, 
Washington, Oregon, and the Southeastern Atlantic 
States was due largely to the abundance of forests and 
water power in those areas. In 1939, hemlock and 
southern yellow pine were by far the most important 
kinds of wood used by the industry ; southern yellow 
pine alone supplied over 35 percent of the cordwood for 
the industry. 

Table 7. — Value of materials consumed in pulp mills, 1939 



Kind of material 



Total, all materials 

Wood' 

other materials and supplies 

Fuels 

Purchased electric energy. _. 
Oontract work 



Thou- 
sands of 
dollars 



144, 737 



84, 539 
43,230 
11,403 
5,519 
46 



Percent 
of total 



100.0 



« 



58.4 
29.9 
7.9 
3.8 



Source: Census of Manufactures, 1939. 

' The total quantity of wood consumed was 10,816,466 cords. 
2 Less than 0.06 percent. 



Occasionally a single-material industry will be no- 
tably market-oriented. The petroleum refining indus- 
try displays in jjart this characteristic, although much 
of the capacity is near the producing fields. Crude pe- 
troleum is by far the leading material (table 8). Prac- 
tically full conversion of the crude petroleum to con- 
sumable products makes feasible the location of plants 
near markets. Increased demand for motor fuels and 
greater flexibility in adjusting refinery yields has ac- 
centuated this tendency. The development of the oil 
pipe line and the availability of cheap water transpor- 
tation by tanker were imiDortant in determining the lo- 
cation pattern assumed by the oil refineries. These 
developments made it possible for the manu- 
facturing plants to locate near densely populated 
consuming areas, even at great distances from 
the sources of raw materials. The pipe line orig- 
inated as a plant facility. New discoveries in the 
use and operation of pipe lines wei-e made available 



Table 8. — QudntUy timl vuIkc of materials consumed in the 
petroleum refining industry, 1939 



Kind of material 



Total, all materials. 



Crude petroleum 

Partially refined oils, tops, waxes, etc. 

Natural gasoline 

Soda ash 

Sulphuric acid <_ 

Caustic soda, purchased 

Fuller's earth.. 

other materials and supplies 

Anthracite 

Bituminous coal 

Coke 

Fuel oils (including crude oil and gas oils).. 

Natural gas _ 

Manufactured gas _ 

Mi.ved gas _ 

Purchased electric energy 

Contract work 



Quantity (short 
tons, except 
where noted) 



■ 11, 250, 256, 188 

1 2 63, 556, 255 

' 5 51,785,031 

11,318 

924, 589 

99,297 

158, 386 



9,129 

754,113 

86, 171 

1 37, 156, 306 

•115,842,098 

s 161, 724, 177 

• 2, 896, 481 



Value 



Thousands Percent 
of dollars of total 



1,861,671 



58, 479 



10,904 
2,210 



100.0 



3.1 



Source: Censm of Manufactures, 1939. 

> Barrels of 42 gallons each. 

2 The average weight per barrel of crude petroleum is 308.8008 pounds. The crude 
petroleum consumed as raw material is equivalent, therefore, to approximately 
193,039,565 short tons. 

3 The average weight per barrel of natural gasoline is 235.8115 pounds. The natural 
gasoline consumed as raw material is equivalent, therefore, to approximately 6,105,455 
short tons. 

* Includes purchased, produced in plant, reclaimed, and reused acid. 
' Thou-sands of cubic feet. 

to refineries, and now few refining establishments have 
been constructed outside of the oil fields away from 
deep water without their own pipe line connections.' 
In 1941 operations of petroleum refineries were lo- 
cated in 36 States with apijroximately 80 percent of the 
total refining capacity concentrated in 12 States; only 
about 40 percent of the total capacity was in the interior 
of the Nation and over half of the 1941 cracked-gasoline 
capacity was on locations adjacent to deep water .^^ The 
capacity near the coast lines in California and Texas 
is partly due to the location of nearby oil fields; but 
this and other capacity along the coasts far from oil 
fields indicate the importance of tanker transj^ortation 
in determining the location of the refineries. 

The flour and other grain-mill products industry 
might also be considered a single material industry. 
Wlieat accounts for 77.2 percent of the total cost of 
materials (table 9). The quantity of this one raw 
material is so great that the sources of wheat would 
be expected to exert much influence on the location 
of flour mills. The large milling centers, such as 
Minneapolis, Buffalo, and Kansas City, however, are 
not in the midst of the producing areas but rather on 
the routes to the leading markets. Small reductions 
in bulk during milling and the freight rate structure, 
including the milling-in-transit privilege,^^ help to 
explain this location. Tlie industry class is a somewhat 
mixed category which includes mills that manufacture 



9 J. E. Pogue, Economics of the Petroleum Industry, Chase National 
Bank, New York, p. 33. 

"• Bureau of Mines Information Circular 1161, April 1941. 
" See chapter 9. Transportation, pp. 191-192, 



Industriul Location and National Resoitrces 

Table 9. — Quantity and value of materials consumed in the flour 
and other 0-aiiumiU products industry, 1939 





Quantity 
(short tons, 

except as 
noted for fuel 
oils and gas) 


Value 


Kind 0' material 


Thousands 
of dollars 


Percent 
of total 






'492,398 


100.0 










15,241,610 

1, 743, 127 

141, 545 

215,684 

135,483 

19,689 

21.590 

13.194 

29,049 

95 

38,829 

27,243 

7.489 

2.795 

674 

2.149 

10.970 

7.681 

11,123 

4,363 


380, 135 

36,572 

3,162 

3,767 

2,867 

606 

574 

340 

865 

8 

431 

1.050 

212 

160 

38 

71 

l,.19fi 

312 

224 

626 
50,296 

2, 2,';6 

6,226 
104 


77.2 




7.4 


Oats 


.6 




.8 


Barlev 


.6 




.1 


Rice and other prains . - 


.1 




.1 


Soyhpflnt;, hpnn-nll ratp 


.2 




(!) 




.1 


Wheat flour 


.2 




(') 


Buckwheat flour 


(»> 




(!) 




(!) 


Phosphate - - 


.3 


Soda - -- 


.1 


Salt 


. 1 


Seasonings, shortenings, and enriching mate- 
rials 


.1 




10.2 




4,187 

366. 405 

62 

3 348.951 

< 1. 733. 674 

• 30. 789 

'11,834 








Coke 




Fuel oils (including crude oil and gas oils) 


.S 










Purchased electric energy 


1.3 






(!) 









Source: Census of Manufacturet, t9S9. 

I Estimated. The quantity and value of materials were reported in detail to the 
Bureau of the Census by establishments representing 97.3 of the industry as measured 
by the value of products. Total value of materials for all establishments was 
$506,061,519. 

' Less than 0.05 percent. 

' Barrels of 42 gallons each. 

' Thousands of cubic feet. 



Table 10. — Quantity and value of materials consumed in the 
tobacco manufactures industries, 1939 ^ 



Kind of material 



Total, all materials. 



Leaf tobacco -. 

Cigarette paper _ 

Beet sugar--- _ 

Cane sugar 

Corn sugar _ .- 

Maple sugar 

Licorice 

Corn syrup.- --- 

Cane syrup and molasses - 

Other materials and supplies 

Anthracite 

Bituminous coaj - 

Coke 

Fuel oils (including crude oil and gas oils) . 

Natural gas _ 

Manufactured gas 

Mi.xed gas 

Purchased electric energy 

Contract work 



Quantity 
(short tons, 
except as 
noted for 
fuel oils 
and gas) 



393. 926 



16, 
243. 

2, 
•36, 
'15, 
'20, 

5, 



Value 



Thousands 
of dollars 



' 382. 922 



297, 914 
8,283 

75 
1,486 

28 
1,353 
2, 81)5 

91 

47 
67,562 



1.239 



1,023 
966 



Percent 
of total 



100.0 



77.8 
2,2 



(>) 



(') 
(') 



.4 

.7 



Source: Census of Manufactures, I9S9. 

' The tobacco manufactures group comprises the cigarettes, cigars, and tobacco, 
(chewing and smoking) and snuff industries. 

' Does not Include the cost of internal revenue stamps for the tobacco industries. 
That cost, amounting to $589,115,175, is not considered as a material cost for this 
analysis. 

' I.,ess than 0.05 percent. 

' Thequantity of corn sirup reported was 318,531 gallons. The quantity by weight 
was calculated at 11.5 pounds per gallon. 

* The quantity of cane sirup and molasses reported was 187,520 gallons. The 
quantity by weight was calculated at 11.75 pounds per gallon. 

« Barrels of 42 gallons each. 

' Thousands of cubic feet. 



139 



Table 11. — Quantity and value of materials consumed in the 
Mast furnace products industry, 1939 





Quantity 
(short tons. 

except as 
noted for fuel 
oils and gas) 


Value 


Kind of material 


Thousands 
of dollars 


Percent 
of total 


Total, all materials ... 




463,719 


100 








Iron ore (other than manganese) ... . . 


67,620.305 

809,593 

2,707,434 

2, 679, 501 

10, 275, 588 

1, 860, 230 


238,309 
12,115 
12,027 

13,311 
13.956 
2,546 
8,183 

145, 500 

1.444 
16, 328 


51 4 






Piu'chased sintered ore and flue dust 


2.6 


Scrap (iron and steel) purchased or trans- 
ferred from other plants under same owner- 
ship 


2.9 




3.0 


Dolomite 


5 


Other materials and supplies 


1 8 


.\nthracite 


1 31, 894 

' 452, 166 

131,354,793 

' > 246. 484 

1^7,934,902 




Bituminous coal 




Coke --.- __ 


31.4 


Fuel oils (including crude oil and gas oils) 

Natural and manufactured gas 






.3 


Contract work 




3.5 









Source: Census of Manufactures, 19S9. 

' Estimated. For 1939 the Census of Manufactures showed combined statistics on 
the quantity of fuels consumed in the bla.st furnace products industry and in the steel 
works and rolling mills industry. Quantity statistics were given separately, however, 
foreach of these industries in the 1937 Census of Manufactures. Since the total quanti- 
ties reported in 1 he 2 years seemed comparable, the 1939 amounts of each fuel consumed 
were allocated between the industries in proportion to the 1937 figures. 

2 Barrels of 42 gallons each. 

3 Thousands of cubic feet. 

products other than wheat flour and might, there- 
fore, be considered a consumer of one major material 
and a long list of significant minor materials. 

In terms of quantity and value the principal direct 
material of the tobacco industry is leaf tobacco, which 
constitutes 77.8 percent of expenditures for all kinds 
of materials (table 10). Several minor materials are 
of appreciable importance from the standpoint of both 
quantity and value. The group is not completely uni- 
form since it includes industries manufactui'ing several 
types of products — cigarettes, cigars, chewing tobacco, 
and snuff — with differing requirements for materials. 

A common class among raw-material-consmning 
industries is that which depends almost solely on two 
types of materials. This combination is prevalent 
f.mong the metals-refining industries, in which ore and 
fuels or power are brought together. The blast fur- 
nace products industry, for example, consumed in 1939 
nearly 58 million tons of iron ore and over 32 million 
tons of fuels; these two materials constituted 51.4 and 
31.4 jiercent, respectively, of the total cost of materials, 
supplies, fuels, purchased electric energ}', and contract 
work (table 11). Actually the tonnage of fuels re- 
quired is understated by these data because the con- 
sumption is reported mostly as coke rather than as 
coal. Coke is now produced in byproduct ovens in 
the vicinity of the blast furnaces and the heavier 
material, coal, is handled and transported from dis- 
tant sources. Tlie tonnage of coal consumed directly 
in equivalent coke is roughly nine-tenths of the ton- 
nage of ore consumed. Limestone consumption by 
the industry is the largest minor material, the quan- 



140 



National Resources Planning Board 



Table 12. — Quantity and value of materials consumed in the 
glass industries,^ 1939 



Kind of material 



Total, all materials- 



Silica sand - - 

Sodaasb --. 

Grinding sand 

Limestone - - 

Lime 

Feldspar _ 

Salt cake 

Other materials and supplies 

Anthracite--- - --- 

Bituminous coal - 

Coke 

Fuel oils (including crude oil and gas oils) 

Natural gas 

Manufactured gas '. 

Mixed gas 

Purchased electric energy 

Contract work 



Quantity 
(short tons, 
except as 
noted for 
fue] oils 
and gas) 



2,207.086 
744, 275 
424,591 
202, 653 
201,474 
160.845 
38, 287 



1,878 

858, 687 

628 

! 1.085,861 

> 63, 810, 760 

> 2, 124, 374 

s 372. 020 



Value 



Thousands 
of dollars 



120, 775 



95, 070 



20, 000 



5,534 
171 



Percent 
of total 



78.7 



4.6 
.1 



Source: Census oj Manujacttires, 19S9. 

1 The industry group comprises the following industries: Flat glass; glass con- 
tainers; tableware, pressed or blown glass, and glassware not elsewhere classified. 

2 Barrels of 42 gallons each . 
> Thousands of cubic feet. 



tity used being a little more than 1 ton for each 6 tons 
of iron ore, but the value ratio in 1939 was only 
about 1 to 17. Furthermore, the locational in- 
fluence of limestone is diminished by the fact that 
supplies of fluxing limestone are moderately easy to 
obtain. 

Glass industries might be considered a dual-material 
group, owing to their consumption primarily of silica 
sand and fuels (table 12). Natural gas, fuel oils, and 
coal are consumed in quantity, but among these 
natural gas is most important measured by heat value. 
There has been a tendency for the industry to shift 
to the low-cost sources of gas, but much of the in- 
dustry remains in the Appalachians where gas is now 
relatively costly for industrial plants. In these in- 
dustries, too, there are establishments, especially those 
producing containers, tableware, and pressed and 
blown glass, that show the influence of markets on 
tlieir location. 

Finally, the cordage and twine, jute goods, and linen 
goods industry groujD consumes a complex assortment 
of raw materials, many of which are imported (table 
13). Within the group there are establishments that 
specialize in certain materials, but the degree of special- 
ization is not marked for the group as a whole. 

A similar characteristic is shown by the canning 
and preserving industries. A wide variety of fruits 
and vegetables and of containers are used. The cost 
of fruits and vegetables is approximately the same 
as that of containers (table 14) . Nevertheless, canning 
factories are not as a rule centralized to bring together 
the varied types of materials. They are, on the con- 



Table 13. — Quantity and value of materials consumed in the 
cordage and ttoine, jute goods (except felt), and linen goods 
industries, 1939 



Kind of material 



Total, all materials ._. ._ 

Hard fibers: 

AbacS (Manila fiber), Philippine 

All other AbacS fibers 

Mexican sisal and hcnequen 

Javanese sisal and henequen 

African sisal and henequen 

All other sisal and henequen fibers 

All other hard fibers (including istle, 

Mauritius. Maguey, etc.).- 

Soft fibers: 

Jute - 

Jute butts and rejections-- 

Hemp --- 

Cotton -- 

Purchased yarns 

Cotton waste (purchased only) 

Old bagging, rope, etc., used as fiber stock... 

Other materials and supplies.- 

Anthracite 

Bituminous coal 

Coke- 



Fuel oils (including crude oil and gas oils)- 

Natinal gas 

Manufactured gas. 

Pizrchased electric energy 

Contract work.- 



Quantity 
(short tons, 

except as 
noted for fuel 
oils and gas) 



33, 797 
1,728 
29,470 
29,643 
6.199 
4,385 

5,620 

61,525 

4,349 

888 

34, 966 
7.039 
9,214 

24,350 



Value 



Thousands 
of dollars 



38,845 



8,835 

56. 599 

260 

1 139, 985 

! 17, 576 

'2,657 



3,668 

171 

1,872 

2,195 

483 

326 

377 

6,118 
259 

263 
5,897 
3,756 
1,112 

938 
9,622 



624 



1.329 
'35 



Percent 
of total 



100.0 



9.4 
.4 
4.8 
5.7 
1.2 
.8 

1.0 

15.8 
.7 
.7 

15.2 
9.7 
2.9 
2.4 

24.5 



3.4 
.1 



Source: Census of Manufactures, 1939. 

1 Barrels of 42 gallons each. 

' Thousands of cubic feet. 

3 Value of contract work for the cordage and twine industry only. The figures for 
the jute goods and linen goods industries were not reported separately by the Bureau 
of the Census and are included with those for other materials and supplies. 

Table 14. — Value of materials consumed in the canned and 
preserved foods (except fish) industries, 1939^ 





Quantity 
(short tons, 
except as 
noted for 
fuel oils 
and gas) 


Value 


Kind of material 


Thousands 
of dollars 


Percent 
of total 


Total, all materials 




' 468, 698 


100.0 








Fruits and vegetables , 




ISl, 890 

171. 360 

18. 039 

9,167 

963 

79,381 

4,787 

2,540 
591 


38 g 






36.6 




198, 859 

100, 642 

12,785 


3.9 


Beet sugar -- - - 


2.0 




.2 


Other materials and supplies . 


16 9 




17.260 

656, 231 

4,884 

! 477, 379 

< 4, 520, 778 

< 150, 367 

< 26, 864 




Bituminous coal 




Coke 




Fuel oils (including crude oil and gas oils) 


10 


Manufactured gas - . 








Purchased electric energy 


.5 






.1 









Source: Census of ManufqHures, 19S9. 

•The industry sub^oup comprises the following industries: canned and diied 
fruits and vegetables (including canned soups) industry; preserves, jams, jellies, and 
fruit butters industry; pickled fruits and vegetables, and vegetable sauces and sea- 
sonings industry; salad dressings industry: and quick-frozen foods industry. 

• Estimated. The quantity and value of materials were reported in detail to 
the Bureau of the Census by establishments representing 99.S percent of the industry 
as measured by the value of products. Total value of materials for all establish - 
ments was $469,637 000. 

3 Barrels uf 42 gallons each. 

* Thousands of cubic feet. 

trai*}', specialized and located close to the source of raw 
products to reduce spoilage and costs of transportation 
of the perishable, somewhat bulky materials. Assem- 
bly of products takes place after the manufacturing 
stage. There is thus a distinct difference between the 
industry requirements for combinations of products 



Industrial Location and National Resources 



141 



and the individual plant requirements. The perish- 
ability of the raw fruits and vegetables makes the 
location of many of the operating plants something 
more than a problem in transportation. Just as the 
crushing of sugar cane or sugar beets and the boiling 
of the juice to molasses or coarse sugar must continue 
close to sources because of perishability, so must many 
small establishments be located close to plantations or 
farms to process raw fruits and vegetables. Yet this 
element of perishability, which binds particular estab- 
lishments to widely scattered spots in spite of the eco- 
nomic attractions of other localities, is weakened by 
every new device to retard decay. ^^ At present re- 
frigerated fruit and vegetable shipments are in the 
service of the consumer market rather than to manu- 
facturing industries located at some distance. 

Combinations of Materials in Semimanufactured- 
Material-Consuming Industries 

Industries that are classed as consumers of semi- 
manufactures use a greater number of combinations 
of materials than do industries that consume prin- 
cipally raw materials. Some of the most striking 
examples of single material industries are in the semi- 
manufactures-consuming group. On the other hand, 
the most complex combinations are also included. The 
tin can and other tinware industry is decidedly depend- 
ent on one semimanufactured material, tin plate 

Table 15. — Quantity and value of materials consumed in the 
tin cans and other tinware not elsewhere classified industry, 
19S9 



Kind of material 



Total, all materials. 



Tin plate 

Terneplate 

Black plate -.. 

Steel sheets, plate and strip — hot-rolled (ex- 
cept stainless) 

Steel sheets and strip — cold-rolled (eicept 

stainless and vitreous enameled) 

Stainless steel sheets and strip 

Copper 

Aluminum 

Other materials and supplies 

Anthracite -. 

Bituminous coal -. 

Coke - 

Fuel oils (including crude oil and gas oils) 

Natural gas 

Manufactured gas 

Mixed gas 

Purchased electric energy 

Contract work 



Quantity 
(short tons, 

e.xcept as 
noted for fuel 
oils and gas) 



Value 



1,760,689 
134.969 
71.188 

34,283 

10, 914 

4 

314 

77 



8,357 

75,285 

267 

' 172, 007 

' 626. 930 

I 951. 669 

< 90, 435 



Thousands 
of dollars 



•244,063 



189,315 
12, 079 
5,098 

1,924 

757 

6 

106 

57 

31,852 



1,321 



,511 
38 



Percent 
of total 



100.0 



77.6 
5.0 
2.1 



(') 
(=) 
(') 



13.1 



(') 



Source: Cemut of Mttnufaduret, t9S9. 

» Estimated. The quantity and value of materials were reported in detail to the 
Bureau of Census by establishments representing 98.0 percent of the industry as 
measured by the value of products. The total value of materials for ail establish- 
ments was $249,044,215. 

» Less than 0.05 percent. 

* Barrels of 42 gallons each. 

* Thousands of cubic feet. 



" Cf. I.. A. Ross. "The Location of Industries." Quarterly Journal of 
Bcormmica, April 1896, p. 252. 



Table 16. — Quantity and value of materials consumed in ttie 
"wire dravon from purchased rods" industry, 19S9 ' 





Quantity 
(short tons, 

except as 
noted for fuel 
oils and gas) 


Value 


Kind of material 


Thousands 
of dollars 


Percent 
of total 


Total all materials - 




99,982 


100. 








Hot-rolled iron and steel bars. . . 


46.516 

667,203 

116,946 

8,087 

42,151 

33,962 

12,613 


2,097 

29,153 

26; 066 

1.433 

2.640 

2.499 

1.339 

29,776 

2.242 

2,587 
150 


2.1 




29.2 




28.1 




1.4 


Hot-roiled sheets and strip steel _ 


2.6 


Steel wire {purchased as such) ^ 

Zinc - 


2.5 
1.3 




29.8 




39,049 

172,622 

994 

! 328, 228 

> 835. 957 

> 814. 818 

> 19. 691 








Coke - 




Fuel oils (including crude oil and gas oils) 

Natural gas 


2.2 












2.6 






.2 









Source: Census of Manufactures, 1 9SS. 

I Does not include wire departments of rolling mills, 
s Barrels of 42 gallons each. 
3 Thousands of cubic feet. 



Table 17. — Quantity and value of materials consumed in the 
steel castings industry, 1939 



Kind of material 



Total, all materials --- 

Scrap rails, axles, bars, and other iron and 

steel scrap - 

Pig iron - - -■ 

Ferro alloys (except manganese) 

Ferro manganese.- - - -- 

Nickel 

Aluminum. -. - -- 

Iron ore 

Nonferrous alloys — - --- 

Copper - - 

Copper scrap -- 

Other materials and supplies -- 

Anthracite - 

Bituminous coal 

Coke- - - 

Fuel oils (including crude oil and gas oils) - . . 

Natural gas.. -- -- 

Manufacture gas - - 

Mixed gas --- 

Piuchased electric energy 

Contract work - 



Quantity 
(short tons, 
except as 
noted for 
fuel oils 
and gas) 



577, 310 

147, 093 

11,430 

12.994 

1,315 

341 

7.622 

187 

41 

13 



5,639 

2W,6% 

30,982 

' 960, 970 

< 3. 757, 926 

' 143,877 

•622,473 



Value 



Thousands 
of dollars 



1 44, 327 



8,850 

3.075 

1.374 

1.071 

865 

135 

67 

51 

9 

3 

19,627 



3.717 



4,896 
587 



Percent 
of total 



100.0 



20.0 
6.9 
3.1 
2.4 
2.0 
.3 



(•) 
(•) 



11.0 
1.3 



Source: Censut of Manufactures, I9S9. 

' Estimated. Quantity and value of materials were reported in detail to the 
Bureau of the Census bv establishments representing only 98 percent of the mdustry 
as measured by the value of products produced. Total value of materials tor all 
establishments was $4,1.2.32,070. 

» I^ss than 0.05 percent. 

> Barrels of 42 gallons each. 

• Thousands of cubic feet. 

(table 15). The wire industry using purchased rods 
consumes, in terms of tonnage, mainly one material, 
iron and steel wire rods, and, in terms of value, an 
additional important material, copper bars and rods 
(table 16). The steel castings industry uses in major 
part iron and steel scrap as material (table 17). Raw 
materials are almost completely absent from the list 
of materials consumed, but it should be noted that 
outlays for purchased electric energy and for supply 
items not counted as materials proper bulk very large. 



142 



National Resources Planning Board 



Table 18. — Quantity and value of materials consumed in the 
steel works and rolling mills industry, 1939 



Kind of material 



Total, all materials. 



Iron ore- -._ 

Pig iron 

Steel ingots--- -- 

Blooms, billets, and slabs 

Sheet and tin-plate bars... 

Ferro-alloys (except manganese). 

Ferro manganese 

Scrap rails, axles, bars, etc., for rolling 

Other scrap iron and scrap steel (purchased) 
Zinc- 



Pigtin 

Aluminum 

Nickel 

Copper 

Copper scrap.. 

Nonlerrous alloys scrap 

Other materials and supplies 

Anthracite 

Bituminous coal _ 

Coke 

Fuel oils (including crude oil and gas oils). 

Natural and manufactured gas 

Purchased electric energy 

Contract work 



Quantity 

(short tons, 

except as noted 

for fuel oils 

and gas) 



3, 127, 991 

31,460,439 

348, 883 

8, 265, 908 

1, 729, 065 

317, 444 

373, 176 

1,373,464 

12,026,975 

194, 474 

44, 906 

15, 487 

23,436 

41,446 

4,860 

11,567 



1311,051 

■ 8, 775, 706 

1 738, 137 

' ' 27, 140, 674 

1 3 1, 125, 622, 535 



Table 19. — Quantity and value of materials consumed in the 
bread and other bakery products and the biscuit, crackers and 
pretzels industries, 1939 



Value 



Thousands 
of dollars 



, 572, 472 



18, 488 

428, 489 

11,715 

221, 103 

47, 162 

36, 890 

25, 677 

21, 892 

162, 413 

19, 598 

40, 906 

5,074 

14, 030 

8,904 

765 

2,867 

342, 092 



126, 990 



35, 804 
2,614 



Percent 
of total 



100.0 



1.2 

27.2 

.7 

14.1 

3.0 

2.3 

1.6 

1.4 

10.3 

1.2 

2.6 

.3 

.9 

.6 

.1 

.2 

21.8 



8.0 



2.3 
.2 



Source: Census of Manufactures, 1939. 

> Estimated. For 1939 the Census of Manufaclures showed combined statistics on 
the quantity of fuels consumed in the blast furnace products industry and in the 
steel works and rolling mills industry. Quantity statistics W'cre given separately, 
however, for each of these industries in the 1937 Censui, of ManvjactUTcs. Since the 
total quantities reported in the 2 years seemed comparable, the 1939 amounts of each 
fuel consumed were allocated between the industries in proportion to the 1937 figures . 

' Barrels of 42 gallons each. 

3 Thousands of cubic feet. 

This tendency to depart from a close dependence on 
materials that enter directly into the product is de- 
cidedly noticeable in most of the semimanufactures- 
consuming industries. 

Steel works and rolling mills further exemplify 
industries that consume primarily one or two types of 
materials, in this instance pig iron and to some extent 
scrap iron and steel (table 18). A long list of supple- 
mentary materials, however, is also consumed. The 
assembly of materials is clearly not the chief problem 
of this industry; rather it is the synthesis of a semi- 
manufactured commodity to provide finished iron and 
steel products both for further manufacturing and for 
ultimate consumers. Note, too, that the list of mate- 
rials indicates considerable shifting or transfer of 
semifinished products among establishments within the 
industry, for blooms, billets, slabs, sheets, bars, and 
similar commodities are semimanufactured products of 
the industry. In particular they are the products of 
the larger, more integrated concerns which sell to less 
completely equipped establishments in the industry. 

The bread and bakery products industry, on the 
contrary, well illustrates the semi-manufactured- 
material-consuming industries that bring together a 
large number of materials to produce commodities for 
ultimate consumers. Wheat flour, however, is con- 
sumed in far larger amounts than any other material 
(table 19). Accordingly, the industry should be con- 



- 


Quantity (short 

tons, except as 

noted for fuel 

oils and gas) 


Value 


Kind of material 


Thousands 
of dollars 


Percent 
of total 


Total, all materials 




"637,786 


100 








White wheat flour 


4, 103, 061 
191,053 
167, 278 
143, 043 
191,564 
371, 105 
65, 337 
25, 192 
(?) 

19, 591 
16,509 
142, 086 
206, 690 
68,898 
84, 865 
84,340 
20,088 
(') 

73,885 
94,603 

w 


188,033 

9,214 

7,603 

10, 768 

18, 144 

35, 682 

6,122 

1,680 

33, 898 

10,802 

3,446 

22,444 

40, 581 

5,488 

9,666 

12, 664 

2.913 

21,971 

20, 642 

1,854 

82,064 

63, 086 

17, 850 

12, 172 

8 




Whole-wheat (including graham) flour 

Rye flour.. 


1.4 
1 2 


Other flour 


\ 7 


Beet sugar 


2 8 






Corn sugar .. . . . 


g 




3 


Eggs, fresh, frozen, dried or canned 


5 3 


Butter 




Oleomargarine 


5 






Shortenings other than lard 


6 4 


Fluid milk. 


g 


Condensed and evaporated milk 


1 5 


Powdered milk 


2 






Fruit -'. 


3 4 


Yeast 


3 2 


Salt 


3 




12.9 


Other materials and supplies 


9 9 


Anthracite.. __ 


282, 133 
517,392 
174,880 
> 1, 899, 174 
• 9, 722, 767 
< 5, 340, 010 
•1,209,110 








Coke 




Fuel oils (including crude oil and gas oils) . . 
Natural gas 


2.8 






Mixed gas. 






1.9 






(') 









Source: Census of Manufactures, 1939. 

1 Estimated. The quantity and value of materials were reported in detail to the 
Bureau of the Census by establishments representing only 98.2 percent of the com- 
bined industries as measured by the value of products. Total value of materials for 
all establishments was $649,476,628. 

* Data not available. 

3 Barrels of 42 gallons each. 

* Thousands of cubic feet. 
' Less than 0.06 percent. 

sidered as one that consumes a major material and a 
gi'oup of minor, or secondary, materials. The outlay 
for containers, an item of substantial importance, is 
of interest as a characteristic feature of industries that 
prepare commodities, usually from semimanufactures, 
for wide distribution to consumers. The bakery indus- 
tries are market oriented, for their final products are 
much more perishable than their starting materials. 
It is interesting to contrast the location of this indus- 
try with that of an industry, such as canning and 
preserving, which processes perishable materials and 
which must locate close to the sources of materials. 

Another linkage of the semimanufactured-material- 
consuming industries with consumers through mate- 
rials is illustrated by paper and paperboard mills 
which also consume one major material along with 
several significant minor materials (table 20). The 
outstanding material is woodpulp which constitutes 
52.0 i^ercent of the total expenditures for material by 
the industry. The leading minor material, waste 
pajjer, is obtained from substantially the same sources 
as the market for the finished product. Since wood- 
pulp is not subject to much weight loss during the 
manufacturing process, it is to be expected that the 



Indv^tiial Location and National Resources 



143 



Table 20. — Quantity and, value of materials consumed in the 
paper and paperboard mills industry, 1939 



Kind of material 



Total, all materials- 



Sulphite woodpulp 

Sulphate woodpulp 

Mechanical woodpulp -. 

Soda woodpulp.- 

Semichemical woodpulp ^,-- 

Manila stock (rope, jute, bagging, etc.)- 



Waste paper (paper stock) - 

Straw - - 

Other fiber (cotton, etc.)--. 
Casein 



Clay. 

Rosin 

Rosin sizing 

Other nonfibrous materials (alum, starch, 

etc.) -.- 

Other materials and supplies 

Fuels 

Purchased electric energy... 

Contract work 



Quantity 
(short tons) 



Value 



Thousands 
of dollars 



2,912,704 

3, 354, 338 

1, 749, 118 

515,650 

118, 613 

64,149 

468,287 

4, 366, 267 

512,993 

115, 173 

17,587 

427,481 

35, 915 

94,325 

671,115 



532, 261 



131,720 

86,606 

34,445 

22, 212 

1,636 

2,233 

14, 808 

57,293 

3,400 

3,186 

3,244 

7,481 

1,941 

4,980 

22,929 
75, 223 
43,507 
15, 387 
130 



Percent 
of total 



100.0 



24.7 

16.3 

6.5 

4.2 

.3 

.4 

2.8 

10.8 

.6 

.6 

.6 

1.4 

.4 

.9 

4.3 
14.1 
8.2 
2.9 
(1) 



Source: Census of Manufactures^ W39. 
1 Less than 0.05 percent. 

paper mills may be scattered and are not necessarily 
located near pulp mills. 

Census data do not adequately reflect the extreme 
complexity of materials typical of many of the indus- 
tries consuming semi-manufactures. Producers of 
electrical machinery, apparatus, and supplies place 
many products on the market which are composites 
of numerous materials. For example, the raw mate- 
rials used to make parts for the common telephone set 
are as follows : 



Aluminum. 


Phenol resin. 


Anthracite. 


Quartz. 


Asphalt. 


Rubber. 


Brass. 


Silk. 


Cellulose acetate. 


Silver. 


Gold. 


Cobalt. 


Hemp. 


Copper. 


Iron. 


Cotton. 


Leather. 


Flax. 


Mica. 


Galena. 


Chinawood (tung) oil. 


Tin. 


Linseed oil. 


Waxes. 


Kauri gum. 


Shellac. 


Chromium. 


Wool. 


Chiv and talc. 


Zinc. 



These materials must be assembled from many sources, 
both domestic and foreign. Most of the materials are 
obtained indirectly as seminiaiiufactures, for the man- 
ufacturer of the telephone sets does not start his work 
with all the basic raw substances. The total amounts 
of each material needed are small, and the value of each 
is small in proportion to the final value of the finished 
telephone set. Manufacturers specializing in such 



composite products tend to choose large industrial 
areas for a factory location because of better business 
and service facilities, and because of the procurement 
and assembly problems of the materials. The chances 
are. that an area where a variety of products are manu- 
factured will be favored, and that no one or two mate- 
rials will have much influence on the choice of location. 

Sequence of Materials 

The way in which materials pa.ss through successive 
stages of production may determine the location pat- 
terns. The stages maj' have to be closely tied together, 
as in some branches of the metal industries where it 
is preferable to process the materials through two or 
more stages before allowing them to cool. One or 
more stages may be self-contained units, as is common 
in the cloth industry which does not need to be directly 
connected with dyeing or garment manufacture; or one 
stage may be followed by a variety of later stages, as 
illustrated in the diverse uses of steel billets. Occasion- 
ally stages may be combined or eliminated, with the 
result that the production is unified at one location or 
results in a shortened sequence. The rayon industry 
has condensed processes in place of the various stages re- 
quired for thread production under the older operations. 
Pi'oduction of cloth fi-om synthetics without spinning 
or weaving operations illustrates the elimination of 
stages. The chaining together of stages depends 
partly on whether the output of all or most of a stage 
is required by a succeeding stage. No doubt one of the 
reasons for location of byproduct coke plants at iron 
and steel plants is the existence on the spot of consump- 
tion needs suitable and adequate to afford efficient 
operation of the ovens for coke, coal gas, and other coal 
products. AVere the consumption of coke for other uses 
larger, there would be more incentive to locate a greater 
share of the establishments elsewhere. 

Specialization of Materials 

Crude materials for industry almost invariably have 
less specialized use possibilities than finished products. 
Iron ore can be made into any kind of iron or steel prod- 
uct. After the ore has been converted into a special 
type of iron or steel — high carbon, low carbon, or one 
of many alloys — its possibility of varied use becomes 
limited. The final product, whether it is a producers' or 
a consumers' commodity, may have no value except for a 
single use or as scrap material for reworking. The 
effect of this specialization is a difference in point 
of view with regard to location. In nuvny instances, 
perhaps a majority of instances, the unspecialized 
product may be distributed to a market less widespread 
than that for the specialized product. This increasing 
dispersion results in large part from the channeling of 



144 



National Resources Planning Board 



Table 21. — Quantity and value of materials consumed in the 
chocolate and cocoa products industry, 1939 



Kind of material 



Total, all materials- 



Cocoa beans — 

Beet sugar 

Cane sugar 

Corn sugar 

Corn sirup - 

Creamery butter 

Milk (fluid, condensed and evaporated, and 

powdered) - 

Nuts- 



Other materials and supplies .- 

Anthracite 

Bituminous coal ___ 

Coke 

Fuel oils (including crude oil and gas oils) . 

Natural gas — 

Manufactured gas 

Mixed gas 

Purchased electric energy... 

Contract work 



Quantity 

(short tons, 
except as 
noted for 

fuel oils and 
gas) 



272, 505 

16, 714 

111,798 

831 

4,168 



2,701 
129,097 
101 
1 86, 547 
'937 
» 39, 323 
> 1,299 



Value 



Thousands 
of dollars 



63, 460 



28,547 

1,447 

9,794 

69 

219 

346 

6,138 
2,990 
12,444 



737 



728 




Percent 
of total. 



100.0 



45.0 
2.3 

15.4 
.1 
.3 
.6 

9.7 
4.7 
19.6 



1.2 



1.2 
.0 



Source: Cenfus of Manufactures, 1939. 

' Barrels of 42 gallons each. 
2 Thousands of cubic feet. 

Table 22. — Quantity and value of materials consumed in the 
candy and other confectionery produ^cts industry, 1939 





Quantity 
(short tons, 
except as 
noted for 
fuel oils 
and gas) 


Value 


Kind of material 


Thousands 
of dollars 


Percent 
of total 


Tntftl, all mftterials 




' 162,028 


100 










128,200 

225, 941 

11,014 

14,047 


11,608 

20,899 

829 

1,187 

3,544 

743 

897 

460 

21. 762 

1,280 

585 

2,314 

335 

2,079 

290 

12, 996 

24,202 

79 

107 

727 

1,340 

50,047 

1,745 

1,815 
158 




Canp <;ii^nr 


12 9 






Tnvprt siipnr (nnlnmnline ef^ ) 


7 


Milk (fluid^ condensed and evaporated, and 


2.2 




11,487 
1,095 
1,348 
104,687 
6,637 
1,034 
16,090 
2,845 
8,166 




Gelatine 


.5 


Cream (butterfat) - 


3 


Chocolate coatings (purchased and used) 

Chocolate liquors (purchased and used) 

Creamery butter 


13.4 

.8 
4 






Cocoa beans 


2 




1 3 


Cocoa powder 


2 




251, 138 

126,072 

117 

349 




Nuts and peanuts 


14 9 


Chicle 




Crude gums (used in chewing gum) 


1 




.4 


Flavoring extracts 




g 






30 9 


Anthracite .. 


10,682 
165,957 
4,679 
! 275, 289 
« 727, 047 
8 341,097 
> 176, 891 




Bituminous coal 




Coke. 




Fuel oils (including crude oil and gas oils) 


1.1 


Manufactured gas 








Purchased electric energy 


1.1 






.1 









Source: Census of Manufactures, 19S9. 

' Estimated. The quantity and value of materials were reported in detail to the 
Bureau of the Census by establishments representing 94.9 percent of the industry 
as measured by the value of products. Total value of materials for all establishments 
was $170,735,600. 

* Barrels of 42 gallons each. 

' Thousands of cubic feet. 

products into sizeable individual producing units, but 
into increasingly complex types of use. Raw-material 
industries are identified mainly with the character of 
material consumed, and finished-good industries mainly 



with the character of use of the products. This differ- 
ence is clearly shown in the industry classifications of 
the Census of Manufactures. 

Degree of specialization is, in general, inversely re- 
lated to extent of combination of materials. Typi- 
cally a raw material is formed into a variety of prod- 
ucts which are in turn combined with other products 
also derived from raw materials. The combinations 
may be continued in succeeding stages of production. 
These transformations may be observed in the chocolate 
and cocoa products industry in conjunction with the 
candy and other confectionery products industry. In 
the forn^r industry expenditures for cocoa beans con- 
stitute almost half the cost of all materials (table 21). 
Cocoa beans are processed and combined with other ma- 
terials — sugar, syrup, butter, milk, and nuts — for use 
in part of the confectionery industry, which consumes 
a long list of materials and which manufactures special- 
use products (cf. table 22) . There are, of course, some 
comparatively rare exceptions to correlation of increas- 
ingly specialized use with advance in the stage of manu- 
facture. Certain wood resources may be valuable only 
for wood pulp, whereas succeeding stages may be less 
specialized. 

Substitution of Materials 

Materials used in manufacture maj' be divided 
broadly into two classes for considering location fac- 
tors in connection with production requirements and 
assembly of materials. First, there are those materials 
with respect to which the manufacturer has consid- 
erable latitude in the choice of the one to be used for 
his manufacturing process. Second, there are those 
materials which are unique with regard to particular 
manufacturing processes. The differentiation is 
roughly between materials that permit substitution in 
greater or lesser degree to accomplish a given purpose 
and materials that permit no substitution. Fuels are 
good examples of widely used materials of the first 
type. The manufacturer usually has two or more fuels 
from which to choose the one most satisfactory for 
his purpose and most economical from an operating 
point of view. Many manufacturing processes are so 
constituted, however, that there is one best fuel, but 
there usually are possibilities of using substitutes in 
emergencies. Another example of the first type is the 
manufacture of kitchen utensils. For these articles, 
iron, copper, aluminum, many alloys, or even gla.ss 
may be chosen. An example of the second type is the 
production of high-grade carbon black, in which, under 
present commercial processes, natural gas is indispensa- 
ble. This special requirement of a consuming industry 
should be distinguished from specialization of a product. 



Industrial Location and National Resources 

In this case natural gas, although a unique material for 
making carbon black, does have other uses. 

The majority of the industrialists requiring semi- 
manufactured materials make use of materials of the 
first type, that is, of those for which substitutes are 
available, but perhaps at large difference in cost. To 
such a manufacturer problems in regard to materials 
involve the economies of the choice and the assembly of 
commodities. The location of his establishment may 
not depend solely on the source of one particular com- 
modity. On the other hand, manufacturers engaged 
in basic process activities are more concerned with get- 
ting unique materials. The establishment whose chief 
function is to produce refined lead must have lead ores; 
sawmills must have logs; and blast furnaces must 
have iron ore, coke, and limestone. To such manufac- 
turers the sources of materials receive more serious 
consideration. 

Physical Changes of Materials in Processing 

If the cost of the materials becomes a large propor- 
tion of the value of the finished products and if the 
loss of weight during processing is great, sources of 
raw materials become of real importance in the loca- 
tion of manufacturing imless the materials are so 
plentiful that they may be obtained almost anywhere 
at equal costs. Few materials, of course, are so widely 
available. 

It has been shown that among industries with large 
expenditures for crude commodities there is a strong 
tendency to locate near the source of raw materials. 
But even among these the influence of materials is not 
always great enough to warrant the presumption that 
the processing factories will be located near the most 
advantageous source of materials. 

Industries located near their market but tvith a high 
proportion of expenditure for raw materials are likely 
to be those that use raw materials in which there 
is little or no weight loss in the processing operations. 
For example, in the petroleum refining industry many 
refineries are located close to the consumer market, and 
at distances of more than 1,000 miles from the source of 
crude oil. In this industry the primary material, crude 
oil, is almost fully converted to marketable products. 
The pull of the market in such cases will, therefore, 
exert a much greater influence relatively because, assum- 
ing equal or approximately equal freight rates, it makes 
little difference whether the crude materials or the fin- 
ished products are transported. This factor has been 
further accentuated by greater flexibility in refining 
methods which permit adjusting the products to the 
market. 

On the other hand, industries such as the primary 
smelting of nonferrous metals use raw materials which 



145 

undergo considerable loss of weight in processing. As 
seen in chapter 1 of this report. Mineral Resources, the 
production of crude ores of copper, lead, zinc, silver, 
and gold accounts for huge tonnages of materials. The 
yield of refined metal from these ores, however, is small, 
being less than one percent in many instances. The 
smelting activities are located close to the mines, except 
possibly where fuel requirements cannot be met satis- 
factorily in the vicinity of the mines. Zinc smelting 
in Pennsylvania is an example. Although the State 
produces no zinc ores, zinc smelters are located there 
to obtain the advantages of a large supply of coal 
which loses substantially all of its weight in the 
smelting process. Iron ore refining presents a pecu- 
liar case in that the ores mined at present are 
usually so rich in metal content that generally they 
tend to move toward the fuel-producing areas for 
smelting or to a market center between the sources of 
iron ore and fuel. In the canning and drying of fruits 
and vegetables, establislmnents are located close to the 
sources of raw materials both because of the weight- 
loss factor and because the raw fruits and vegetables 
are perishable commodities in which delays increase 
the possibilities of loss. For similar reasons -establish- 
ments in the cheese and creamery butter industries are 
located close to the farms. Canning, drying, and other 
means for preserving not only conserve perishable com- 
modities in desirable forms for use at appropriate 
times, but also make possible shipment to distant areas. 
Consequently, the industry whose function it is to pre- 
serve the commodities must necessarily locate close to 
the source of supply. It is possible, of course, to apply 
one means of preservation until a later one can be 
applied. Refrigeration of fruits, for example, enables 
shipment to a canning center far away from the source 
of supply. Salting of hides and pelts to preserve them 
until they can be cured illustrates another expedient. 

The stage of perishability may be altered. Before 
introduction of refrigerator cars, livestock was shipped 
to packing plants or butcher shops near the markets 
because slaughter of the livestock converted it into 
a perishable product. 

Weight changes in commodities during processing 
operations almost always are in the direction of reduc- 
tions. Space requirements for commodities, however, 
may either decrease or increase with successive stages 
of manufacture. Wlien metallic ores are concentrated 
or refined, they decrease in cubic content, but when they 
are converted into a product, such as an electric re- 
frigerator, they occupy an enlarged space. This reduc- 
tion and expansion of space requirements, so typical 
of present-day production, is in no small measure re 
sponsible for orientation of initial processing industries 
near the source of supply of raw materials and of final 



146 



National Resources Plann'mg Board 



processing industries near the ultimate markets. A 
good example is the manufacturing of agricultural 
machinery. Estal)lis]unents in that industry are gen- 
erally close to their farm markets. It is more con- 
venient and cheaper to tiansport, process, and assemble 
the heavy semimanufactured materials such as rods and 
steel shapes, lumber, and sjiecial castings to points 
closer to markets than to ship finished agricultural 
machinery from a location close to iron and steel pro- 
ducing centers. The obvious reason for this is that 
finished agricultural machinery such as a hay rake, a 
binder, or a combine are bulky and consequently are 
difficult to handle and expensive to transport. Auto- 
mobile manufacturers have established branch assembly 
plants to which it is more economical to send finished 
parts for assembly rather than to ship the bulky 
assembled automobile to the market centers. 

The fertilizer industry provides an interesting case 
of changes in weight, space requirements, and perish- 
ability. The long list of materials consumed in this 
industry is shown in table 23. In 1935 fertilizer manu- 
facturing establishments were in 329 counties in the 
laiited States. For the industry as a whole the estab- 
li.shments are usually orientated to their sources of 
materials. Since a variety of materials are used in the 
industry and usually only few kinds are used in par- 
ticular establishments, the processing plants are near 
many different sources which produce the principal ma- 
terials utilized. Thus there are fertilizer establishments 
near such places as meat-packing centers, fishing areas, 
deposits of phosphate rock, and garbage collecting cen- 
ters. Usually the fertilizer establishments may be clas- 
sified as two types — the organic refuse aiid the inorganic 
phosphorous-potash-nitrogen plants. The first type use 
perishable materials that undergo great loss of weight 
in processing. The inorganic type tend to conduct 
their activities in large central chemical factories whose 
highly concentrated products are shipped to local mix- 
ing i^lants where carriers, chiefly inert and alkali ingre- 
dients, are added to dilute the concentrates to usable 
proportions. Fertilizer manufacturing is more impor- 
tant in the South than anywhere else in the United 
States. Sulphur and phosphate rock mining, sulphuric 
acid manufacturing, and the production of cottonseed 
meal are closely interrelated with fertilizer manufactur- 
ing in that area. Most of the Southern establishments 
use large quantities of sulphuric acid to process ferti- 
lizers based on the phosphate rock mined in Florida, 
Tennessee, and Virginia. Both the loss of weight and 
bulk in processing the materials and the perishable 
nature of some of the materials encourage the fertilizer 
plants to locate near their principal sources of materials. 

Because industrial production processes are complex, 
finished commodities may lose much of the essential 



Table 23. — Quantity of materials consumed in the -fertilizer 
industry, 1939 



Kind of material 



Quantity 

(short tons, 

except as noted 

for fuel oils 

and gas) 



339, 590 
87,793 
13,047 
77,289 
34,779 
16,305 
27,356 
45, 145 
69, 476 
76,903 
92,638 
53,951 
31,091 
39,067 
27,063 
17,300 

175, 462 

15, 775 

2, 816, 537 

496, 703 
56,389 
31,083 
19,434 
68,066 

268, 859 
2,029.060 

717,360 
1,161,770 

119,754 

249 

78, 072 

I 153,045 

• 285, 090 

2 3, 572 

"1,208 



Sulphate of ammonia 

Nitrate of soda 

Ammonia anhydrous 

Ammonia, aqua, bases 25 percent NHj , 

Calcium cyanaraid-.. 

Urea and calurea 

Ammonium phosphate- _ 

Cal nitro ._. , 

other inorganic nitrogenous materials , 

Cottonseed meal 

Tankage (processed) 

Tankage (animal) and dried bloods 

Tankage (garbage) .__ 

Fish scrap and meal... _ 

Guano (all kinds)-. 

Sewage sludge 

other organic nitrogenous materials 

Bones, ground, steamed, etC- 

Superphosphate, basis 16 percent A. P. A 

Muriate oT potash, basis 50 percent K3O 

Sulphate of potash 

Manure salts, basis 20 percent KjO._. -. 

Kainite.-- 

Other potash-bearing materials __- 

Other material containing plant food... 

Phosphate rock- 

Sulphuric acid purchased and consumed 

Sulphuric acid made and consumed, basis 50 percent Baumfi 

Phosphoric acid 

Anthracite 

Bituminous coal... 

Fuel oils (including crude oil and gas oils) 

Natural gas 

Manufactured gas 

]Mixed gas 

Source: Census of Mavufactures, 1939. 

' Barrels (42 gallons per barrel). 
- Thousands of cubic feet. 



physical cliaracteristics of their original materials or 
material sources. The chief basic raw materials for 
the electric generator and motor units for an automo- 
bile are copjjer ore, iron ore, and cotton. The electrical 
machinery industry may obtain semimanufactured 
goods i^rocessed from these raw commodities by fac- 
tories such as smelting and refining plants, steel works, 
rolling mills, and textile mills. The manufacturer of 
the final product is dependent for materials on many 
other manufacturers, most of whom are themselves 
several steps removed from the original material. He is 
not, therefore, directly concerned with copper ore, iron 
ore, or cotton when considering materials for an auto- 
mobile generator. 

Well developed transportation facilities and effi- 
ciency of first-stage manufacture have removed much 
of the dependency of users of semimanufactures on 
sources of raw materials. The semifinished goods can 
be made available to meet manufacturers' requirements 
of interchangeability, consistency, and appearance in 
such manner that there is little or no waste of material 
in the final processing. The fact that the alteration of 
the physical form of raw materials is segregated leads 
the manufacturer of final consumers' goods to give 
little heed to extractive areas in the location of his 
plant. 



Industrial Location and Xatii^nal Resources 



147 



Recovery of Scrap Materials 

During recent years the use of scrap materials, par- 
ticularly of iron and steel, has increased in quantity. 
Two reasons are frequently advanced as an explanation. 
Fii-st, more scrap materials are available because of the 
greater use of durable goods over a long period of 
time. Second, there is more salvaging activity be- 
cause of improved markets for certain scrap articles. 
As technological developments extend the use of metal 
products and as mining operations continue to bring 
more metals into use, the recovery of scrap metals will 
tend to increase in somewhat the same proportion. 

Scrap materials are usually described as "old" and 
"new" scrap in the nonferrous metal industries and as 
"home" and "purchased" scrap in the iron and steel 
industry. According to the Bureau of Mines, "old" 
scrap is defined as scrap derived from metal articles 
that have been discarded after having served a useful 
purpose. Typical examples f)f old scrap are dis- 
carded electric wire, battery plates, automobile parts, 
valves, and lithographers' plates. "New" scrap is de- 
fined as the refuse produced during the manufacture 
of articles, including all finished and semifinished ar- 
ticles that are reworked. Typical examples of new 
scrap are turnings, borings, skimmings, drosses, slags, 
and articles discarded because of faulty manufacture. 
The essential difference between old and new scrap is 
that the former represents metal that has been in use, 
whereas new scrap is essentially metal that has not 
yet reached the stage of final use. 

The nonferrous scrap materials are often referred to 
as secondary metals to distinguish them from primary 
metals which are derived directly from ores. This 
distuiction does not imply that secondary metals are 
of inferior quality, for metals derived either from ore 
or from waste material vary in purity and in adapta- 
bility to use. The chief secondary metals prepared 
for the market are copper, lead, zinc, tin, aluminum, 
antimony, and nickel. Large amounts of these are used 
by automobile industries, and the reworking of scrap 
nonfen-ous metals will undoubtedly increase with the 
upward trend in the total use of nonferrous metals. 
In fact, the use of secondary metal that may be a by- 
product of manufacturing operations has become such 
an important factor in the saving of nonferrous metal, 
that in recent years much of this type of scrap has not 
reached the secondary metal market because manufac- 
turers have improved their facilities for using their 
own scrap. In addition there is a growing tendency for 
producers to take back scrap directly from their cus- 
tomers in trade-in agreements, and such metals also do 
not reach tlie secondary metal market. In general there 



Table 24. — Percent of total ferrous scrap and pig iron charged 
to iron and steel furnaces in the United States, 1939 



Ferrous scrap and pig iron 



Home scrap 

Purchased scrap- 
Pig iron 



Percent of total charge to- 



Steel 
(urnaccs ' 



26.4 
21.0 
62. 6 



Iron 
furnaces > 



31.7 
33.4 
34.9 



All furnaces 



27.4 
23.4 
49.2 



Source: U. S. Bureau of Mines, Minerals Yearbook, 19i0. 

I Includes open-hearth, bessemer, and electric furnaces. 

' Includes cupola, air, Brackelsberg, puddling, crucible, and blast furnaces: also 
direct castings. 

is a larger reclamation of the metal consumed in capital 
goods than in consumer goods because the former are 
more accessible to manufactui-ers and scrap dealers after 
they have served their purpose. New scrap, as defined, 
is found only in industrial areas, but old scrap may be 
found wherever duralile products are used. Because of 
the widespread distribution of consumer goods, old 
scrap derived from such sources presents greater sal- 
vage problems, and accordingly the amount of such 
scrap recovered is much more sensitive to changes in 
prices offered for secondai-y metals. 

Data reported in the MineraJs Yenrhook from con- 
sumers of iron and steel scrap are only for scrap used 
in the remelting processes. "Purchased" scrap is there 
defined to include scrap obtained from sources outside 
the consuming plant, scrap transferred from other 
plants of the same company, and scrap obtained under 
exchange contracts or conversion agreements. "Home" 
scrap is defined to include all scrap materials resulting 
from manufacturing processes as well as old materials 
salvaged within the consuming firm. Note that pur- 
chased scrap and home scrap may include both old and 
new scrap materials as defined for nonferrous second- 
ary materials. Home scrap is generally considered as 
recycled material or run-around .scrap which consti- 
tutes a rotating working .stock rather than material 
for actual consumption. Because this scrap, however, 
is definitely a part of iron and steel furnace charges, 
it must be considered to obtain a complete picture of 
raw-material consumption in iron and steel manufac- 
ture. Table 24 shows the proportions of ferrous 
scrap and pig iron charged to iron and steel furnaces 
in 1939. Home or recycled scrap constituted approxi- 
mately 26 percent of the total charge to steel furnaces 
and approximately 32 percent of the charge to iron 
furnaces. This has particular significance when iron 
and steel production figures are considered because in- 
got production is a yardstick for measuring activity 
in the steel industry. Yet it is usual for approximately 
one-fourth of the ingot production to remain in the 
steel plant as rotating working stock, or as home scrap, 
resulting from the various manufacturing processes. 



148 



National Resources Planning Board 



Scrap materials are far more important to the iron 
and steel industry than is commonly realized. In 1939 
the total iron and steel scrap consumed in the United 
States was equivalent to 121 percent of the iron content 
of all domestic and foreign iron ores and manganifer- 
ous ores used in blast furnaces. Purchased scrap alone 
used in that year was equivalent to 56 percent of the 
iron content of the ores. In 1937 these figures were 119 
and 57 percent, respectively. In 1938 they were even 
higher, being 132 and 62 percent, respectively." 

During 1939 the iron and steel industry consumed 
16,701,640 short tons of purchased scrap and 19,621,896 
short tons of home scrap. Taking the average value 
of iron and steel scrap as $17.20 per gross ton at Pitts- 
burgh, the total value of the scrap used in 1939 is 
estimated at $557,872,000. In addition to the iron 
and steel scrap, industry in general during 1939 con- 
sumed 419,500 short tons of new nonferrous scrap and 
605.230 short tons of old nonferrous scrap having a 
combined value of $199,856,800. 

These figures provide concrete evidence of the mag- 
nitude of scrap as a source of materials. They suggest, 
too, the importance of scrap materials to the conserva- 
tion of our natural resources of ores. The value of the 
recovery of scrap materials to conservation of re- 
sources will increase in the future as the scrap indus- 
try grows and natural resources become depleted. 

The widespread use of iron and steel scrap is indi- 
cated by the fact that all states contain plants that 
consume ferrous scrap materials. Table 25 shows the 
percent of total United States consumption of ferrous 
scrap and pig iron by States for 1939. This table in- 
dicates that a number of the scattered iron and steel 
plants are small and that the total amounts of scrap 
consumed in many of the States are of minor impor- 
tance to the iron and steel industry as a whole. The 
greatest consumption of both ferrous scrap and pig 
iron was concentrated in the steel-making centers of the 
North Central, Middle Atlantic, and Southeastern areas. 
In fact, plants in eight States of these areas consumed 
82 percent of the total ferrous scrap, 92 percent of the 
total pig iron, and 88 percent of the total iron and 
steel scrap and pig iron. These states and the percent 
of the total pig iron and scrap consumed in each for 
1939 are: Pennsylvania 26, Ohio 21, Indiana 11, Illi- 
nois 8, Michigan 7. Alabama 5, New York 5, and Mary- 
land 5. The plants in all the other States consumed 
only 8 percent of the total pig iron but 18 percent 
of the total ferrous scrap produced in the United 
States. 

The small steel processing plants that consumed ap- 
proximately 8 percent of the pig iron and 18 percent of 
the ferrous scrap in the United States in 1939 are 

" Minerala Yearboolc, 19S9 and 19i0. 



Table 25. — Percent of total consumption of ferrous scrap and 
pig iron in the United States, by states and districts, 1939 



state and district 


Home 
scrap 


Purchased 
scrap 


Total scrap 


Pig iron 


Total United States: 

Gross tons 


17, 519, 550 
100.0 


14,914,857 
100.0 


32,434.407 
100.0 


31,457 767 


Percent 


100 






Connecticut 


.5 
(') 

.6 
(') 

.1 
(') 


.9 

(') 
1.1 

(') 

.2 
.1 


.6 
<V9 

0) 

.2 
(') 




Maine 


3 


Massachusetts.- 


New Hampshire 


(') 


Rhode Island 


Vermont 


(') 




Total New England 


1.2 


2.3 


1.7 


.7 


Delaware and New Jersey 
New York... 


1.1 
4.8 
23.9 


2.1 
5.3 
20.5 


1.6 

5.0 

22.3 


.8 
5.1 


Pennsylvania... 


28 g 






Total Middle Atlantic 


29.8 


27.9 


28.9 


34.8 


Alabama 


- 3.8 

6.7 
.2 

(') 

.1 
(') 

.6 
1.9 


3.S 

3.3 
.6 
(') 
.2 

(0 
1.1 

3.4 


3.7 

5.1 
.4 
(') 

.1 
(') 
.8 
2.6 


6.8 


District of Columbia, Kentucky 
and Maryland _ 


6 7 


Florida and Georgia 


.2 


Mississippi 


(') 


North Carolina 


(1) 


South Carolina 


.4 


Tennessee and Virginia 


West Virginia 


2.5 






Total Southeastern 


13.3 


12.1 


12.7 


16.6 


Arkansas, Louisiana, and Okla- 
homa... 


.1 

.1 


.3 
.4 


:i 


ni 


Texas 


(') 






Total Southwestern 


.2 


.7 


.5 


(') 


niinois 


8.1 

12.0 

.3 

.1 

10.0 

.5 

.5 

(') 

21.3 


8.6 

10.6 

.5 

.3 

8.2 

.9 

2.2 

(>) 

19.4 


8.3 

11.3 

.4 

.2 

9.2 

.7 

1.3 

0) 

20.4 


7.9 


Indiana 


10 9 


Iowa 


2 


Kansas and Nebraska 


0) 


Michigan and Wisconsin 


5.2 


Mmnesota... 


.5 


Missouri 


.1 


North Dakota and South Dakota 
Ohio 


21 4 






Total North Central 


52.8 


50.7 


51.8 


46.2 


Arizona, Nevada and New 
Mexico ... 


0) 

1.1 
(') 
(') 
(') 


.1 
1.6 
(') 
(') 

.0 


.1 
1.3 

(') 

(') 
(') 


(') 


Colorado and Utah 


1.2 


Idaho 


(') 


Montana 


(') 


Wyoming 


(') 


— 




Total Rocky Mountain.... 


1.1 


1.7 


1.4 


1.2 


-Alaska, Oregon and Washington 
Caliiornia 


.2 
1.4 


1.0 
3.6 


.6 
2.4 


.5 






Total Pacific Coast 


1.6 


4.6 


3.0 


.5 



Source: Minerals Yearbook, ISiO, p. 515. 
• Less than 0.05 percent. 

good examples of establishments freed from original 
sources. Many of these plants are located in places 
at great distances from the raw steel producing cen- 
ters or from sources of iron ore. The assertion is 
sometimes made that such small steel producing plants 
in the outlying areas are not material-oriented estab- 
lishments. In reality they are so oriented, for they are 
located in respect to scrap iron and steel, which is 
their basic raw material, and to local fuel supplies. 

Table 26 shows the total amount of ferrous scrap and 
pig iron consumed in each State and the percent of the 
total derived from home scrap, purchased scrap, and pig 
iron. It is evident from this table that establislrments 
in the New England, Southwestern, and Pacific coast 
districts depend on scrap for the greatest percent of 



Industrial Location and National Resources 



149 



Table 26. — Total ferrous scrap and pig iron consumed and the 
percent of total derived from home scrap, purchased scrap 
and pi(f iron, by states and districts, 1939 





Total 

scrap and 

pic iron 

used (gross 

tons) 


Percent of total used 


State and district 


Home 
scrap 


Pit- 
chased 
scrap 


Total 
scrap 


Pig 
iron 


Total United States 


63,892,174 


27.4 


23.3 


50.8 


49.2 






Connecticut -. 


279,014 
17,447 

372,014 

6.883 

80,516 

17,777 


28.3 
36.0 
27.2 
45.6 
26.2 
24.8 


45.2 
29.6 
45.1 
30.8 
44.7 
42.4 


73.5 
6,5.6 
72.3 
76.3 
70.9 
67.2 


26.5 




34.4 


Massachusetts 


27.7 


New Hampshire 

■Rhniip T'ilflnd 


23.7 
29.1 




32.8 






Tntnl N**w Fnglftnd 


773, 651 


27.8 


44.5 


72.3 


27.7 






Delaware and New Jersey 


754.006 
3,245.709 
16.304,935 


25.3 
25.7 
25.7 


41.8 
24.3 
18.7 


67.2 
50.0 
44.4 


.32.8 




50.0 


Pennsylvania 


55.6 






Total Middle Atlantic 


20.314,650 


25.7 


20.5 


46.2 


53.8 


Alabama ,_ 


3,318,303 

3,767,044 

178, 836 

2,917 

48, 368 

7,702 

401,960 

1,619,613 


20.3 

31.0 
21.2 
24.5 
25.3 
26.5 
24.5 
20.1 


15.7 

12.9 
48.0 
64.4 
49.1 
47.4 
42.0 
31.4 


36.0 

43.9 
69.2 
SS.9 
74.4 
73.9 
66.6 
61.5 


64.0 


District of Columbia, Kentucky, 
and RTaryland - . , 


56.1 




30.8 


Mississippi - - . . 


11.1 


North Carolina 

South Carolina 


25.6 
26.1 




33.4 


West Virginia 


48.5 


Total Southeastern _ 


9, 344, 743 


24.8 


19.3 


44.1 


55.9 






Arkansas, Louisiana, and Oklaboma. 
Texas 


61,564 
90.586 


19.1 
26.3 


78.0 
71.2 


97.1 
97.5 


2.9 
2.5 


Total Southwestern 


152. 150 


23.4 


73.9 


97.3 


2.7 






Illinois 


5,177.788 

7, 103. 680 

188.616 

62,602 

4,621,446 

382.381 

452, 756 

2.229 

13,369,993 


27.4 
29.5 
33.7 
24.3 
38.0 
22.1 
20.4 
64.9 
27.9 


24.8 
22.3 
40.3 
70.7 
26.3 
34.5 
72.2 
29.2 
21.6 


52.2 
51.9 
74.0 
95.0 
64.3 
56.6 
92.6 
94.1 
49.5 


47.8 




48.1 


Iowa 


26.0 




5.0 


Michiean and Wisconsin 


35.7 
43.4 




7.4 


North Dakota and South Dakota... 
Ohio - 


5.9 
50.5 






Total North Central 


31,361,491 


29.5 


24.1 


53.6 


46.4 






Arizona, Nevada, and New Mexico. 


23,091 

787,845 

2,315 

3 

5,995 


29.5 
24.1 
8.3 
66.7 
50.8 


70.3 
29.2 
90.8 

45.0 


99.9 
53.3 
99.1 
66.7 
95.8 


.1 
46.7 


Idaho . . 


.9 




33.3 


Montana _ .. _ . 


4.2 






Total Rocky Mountain 


819. 249 


24.4 


30.6 


55.0 


45.0 


Ala-ska, Oregon, and Washington... 


182,752 
943.488 


19.8 
26.2 


77.1 
67.3 


96.9 
83.5 


3.1 
16.5 








1,126,240 


25.2 


60.5 


85.7 


14.3 







Source: Based on data in Minerals Yearbook, 1940. 

their ferrous raw materials. This is also true of 
€stablishments in many States in the other districts. 
Apparently scrap constitutes by far the greater part 
of the ferrous raw materials used in States other than 
the so-called iron and steel-producing States. For 
example, observe the statistics for the States in the 
North Central iron and steel district. In that district 
scrap is the chief raw material for establishments in 
Iowa, Kansas, Nebraska, Missouri, and the Dakotas. 
Even though the total amount of ferrous scrap con- 
sumed in the majority of States is only a small frac- 
tion of the total scrap and pig iron consumed in the 
United States, the small scattered steel plants have a 
special locational significance (Table 25). The pull on 
industry of available scrap materials is toward con- 
sumption areas and processing areas, for it is in those 



areas that most scrap materials become available in the 
form of discarded consumer articles or industrial by- 
products. The availability of scrap materials tends to 
decrease the connection between location of manu- 
facturing and sources of primary raw materials. 

Foreign Sources of Materials 

The very large and complex industrial system of the 
United States requires large quantities of raw mate- 
rials. Many of these must come from foreign lands 
because domestic resources are lacking or have not yet 
been discovered or exploited. Even where there are 
domestic resources, some raw materials come from 
foreign lands because it is more economical to pur- 
chase certain supplies than to develop or to process the 
domestic materials. A good example of this is bauxite, 
the ore from which aluminum is manufactured. In 
1939 only 48 percent of the bauxite consumed in the 
United States was produced here, the remainder hav- 
ing been imported. Other examples of this type are 
copper, gypsum, and pyrites. Either because of a 
lack of domestic resources or because of convenience, 
the United States has become dependent on foreign 
sources for some materials. 

It is interesting to note the position of the United 
States in respect to the production of crude, or raw, 
materials. Figures 59 and 60 show the proportion of 
the world's production of the various metals and non- 
metals, respectively, in the United States and in lead- 
ing foreign producing areas. 

Among the metals, the United States leads as a 
producer in the world's supply of copper, iron, lead, 
zinc, and molybdenum ores; among the nonmetallic 
minerals, in arsenious oxide, bromine, cement, coal, 
crude feldspar, crude fluorspar, crude gypsum, mica, 
natural gas, natural gasoline, petroleum, phosphate 
rock, salt (sodium chloride), sulfur, talc, pyrophyllite, 
and ground soapstone. The statistics on the propor- 
tion of production of the various minerals present a 
far different picture than do those on the proportion 
of the world's minei-als consumed in the United States. 
Data on consumption of minerals are more common, 
and these sometimes giA'e the impression that the 
United States is self-sufficient in nearly all materials. 

Table 27 shows the proportion of the world's min- 
erals produced and the percent consumed in the United 
States. Similar statistics for foreign areas" indicate 
that the United States is by far the world's greatest 
consumer, having the leading position as consumer for 
nearly every mineral. In those cases where the United 
States is not the leading consumer the explanation 



"Brooks Emcny. The Strateffi/ of Bote )faterial». New Xork. 1»:<8. 
pp. 12-25. 



150 



National Resources Planning Board 



PERCENT OF WORLD PRODUCTION OF SELECTED NONMETALLIC MINERALS 
UNITED STATES AND LEADING FOREIGN PRODUCERS, 1937 J/ 



NONMETALLIC MINERAL 
ARSENIOUS OXIDE 

ASBESTOS 

BARITE 

BROMINE 

CEMENT 

COAL (BITUMINOUS a ANTHRACITE)| 

FELDSPAR, CRUDE 

FLUORSPAR, CRUDE 

GRAPHITE 

GYPSUM, CRUDE 

MAGNESITE, CRUDE 

MICA, SHEET AND SCRAP 

NATURAL GAS 

NATURAL GASOLINE 

PEAT 

PETROLEUM 

PHOSPHATE ROCK 

PYRITES 

SALT (SODIUM CHLORIDE) 

SULPHUR 

TALC, PYROPHYLLITE AND 
GROUND SOAPSTONE 




SOURCES: B*SEO 01 D*T* FflW 8URC»U OF mkES. MI«ER«.S YEi 

tfO FHPERUL INSTITUTE, THE 
J/ 



50 
PERCENT 

1938. 1939. two 1910 ; STATISTICAL TEHRBOOH OF THE LEAGUE OF mTIOiiS. I939-I9R0 (GEnEVi); 



ERA! mPUSTRV OF THE BRITISH EMPIRE AMD FOREIGN COUNTRIES. STATIStlCtl SUiwABT . 1936-1936 (LONDO"). 
THE PER CENT CALCULATIONS ARE BASEO ON STATISTICS FOR THE PROOUCTIOH OF PRIkART WINERALS NOT INCLUDING STATISTICS ON THE RECOVERY OF SECONDARY MINERALS. 

PREPARED IN OFFICE OF THE NATIONAL RESOURCES PLANNING BOARD 



Figure 59 



can usually be found in substitutes that are available 
domesticalh'. A good example of a mineral of this 
type is peat. The United States consumed 138,094 
short tons or only 0.6 percent of the world's peat in 
1937. Of this amount, 51,223 short tons were produced 
domestically." The known peat reserves available in 
the United States are extensive. These have been esti- 
mated to be 13,827,000,000 short tons of equivalent air- 
dried peat.^^ In the United States peat is used 
primarily for soil improvement and there are numer- 
ous possible substitutes in the form of humus, organic 
matter, and other fertilizers available in large quan- 



" Bureau of Jlines, Minerals Yearbook, 1939. 

"Soper, E. K., and Osbon, C. C. The Occurrence and Uses of Peat in 
the United f^latex. ficolnpicTl Snrvev Bulletin Nn. 7?8 I!122. p. 02. 



titles to compete with peat on tiie aomestic marKet. 
Another reason for our apparent low proportion of the 
world's consumption is that even though peat is used 
as a fuel in many European countries, particulaily in 
Eire, its use for that purpose is practically negligible 
in this country because of the large supplies of higher- 
grade fuels obtainable at reasonable costs. Similar 
reasons account for our low proportion of the world's 
consumption of pyrites, crude magnesite, and metallic 
magnesium. 

Except for pyrites, peat, magnesite, manganese ore, 
graphite, and metallic magnesium, the United States 
consumed in 1937 more than one-fifth of the world's 
production of each of the important types of minerals 
(cf. table 27). FiirtheiTnore the over-all consumption 



Iiuluxtiidl Location and National Re!<ourcCH 



151 



PERCENT OF WORLD PRODUCTION OF SELECTED NONMETALLIC MINERALS 
UNITED STATES AND LEADING FOREIGN PRODUCERS, 1937V 



NONMETALLIC MINERAL 
ARSENIOUS OXIDE 

ASBESTOS 

BARITE 

BROMINE 

CEMENT 

COAL (BITUMINOUS a ANTHRACITE)| 

FELDSPAR, CRUDE 

FLUORSPAR, CRUDE 

GRAPHITE 

GYPSUM, CRUDE 

MAGNESITE, CRUDE 

MICA, SHEET AND SCRAP 

NATURAL GAS 

NATURAL GASOLINE 

PEAT 

PETROLEUM 

PHOSPHATE ROCK 

PYRITES 

SALT (SODIUM CHLORIDE) 

SULPHUR 

TALC, PYROPHYLLITE AND 
GROUND SOAPSTONE 



PERCENT 
50 



1 1 268ifc 1 e?'. ■'■■- -■ ^^ - -V. '. ■. ■ v.. 


^^^^HuNlTE^^ATES^^^^H 


:!iiii;?;iSi:;;::;ii: 


.-„■, 


I 






ll>? 




6: V. 










N 




CANADA 




^iiiii! 


lllii Russif 




.■^.;^ 


i^^m^ 


1 1 330 % 1 a;. ". 'f... -'_■. .'. ■. 


■ 


^^^luNlTFD STATES^^I 


^^H 


GEBVfi-ji 










IT^L' 


ALL 0*hEh 





^HI^^Knite^ti^s^I 




u^i 


mnn 


1 GERMA-JT PI: 


rr^U::' 


:,5c-.. 1 ,.-,. 


'ec 


. e^.-. _ _^2- 


^ I". 


:■?•■- 




GERMarjr :::kk.'J^^v- 


: JflFAN RUSSlil STiL 

: <~" 


^ - m 


^M^:-::^ 


^^s^ 




:-;-K..-.\NN.. SNNS V. s^XNNNWNNN 



50 
PERCENT 
SOl»CES: ilStO 0" 0»T* FKOM 9U8EW OF -l»ES. "I'ESaS TEiaeOor. 1938. rS39. *«0 I9^0 : ST1T|STIC*L YE*BB0O< OF THE LEiCuE OF wiTiQwS. I939-I9i0 (GEdCVil; 
l«D IMPEflriL mSTITl/TE, THE wlwEB*! lnOUSTRT OF THE eBlTlSn EMPIHE t»0 FOBEICH COUlTBItS. STATlSTICH SUt-ta*. r936- I93B {lOHDO"t. 
^THE H9 CEHT CWCULITIOHS ME SISED 0« STATISTICS FOR THE PHOOUCTIOH OF PBtfiBT MrnEB»LS HOT IHCH'OIHG STtTISTICS 0" THE BECOVEBT OF 5ECO»0iBY MIHEBiLi 



fRtP»REO IN OFFICE OF THE NATIONAL RESOURCES PUNNING BOARD 



FiGUBE 60 



demands of industries in the Uiiiti'il States almost 
equaled the demands of the rest of the world combined. 
Table 27 also shows the ratio of production to con- 
sumption of the various minerals. Less than 100 per- 
cent indicates insufficient production of the mineral 
for consumption demands; percents greater than 100 
indicate tliat the United States produced a surplus and 
may export quantities of that mateiial. For example, 
the ratios for tin, nickel, chromite ore. and graphite 
are almost zero, indicating that nearly all of the sup- 
plies of these minerals were imported in 1937. Other 
low ratios of production to consumption indicate that 
the United States imported fairly large proportions 
of antimony ore. bauxite, coltmil)ium and tantalum 



ores, manganese ore, nieiomv, i^aiinmn metals, tinig- 
sten ore, vanadium, arsenious oxide, and asbestos. On 
the other hand, high ratios indicate that the United 
States had substantial exportable surpluses of molyb- 
denum, phosphate rock, and sulfur. It is interesting 
to note that supplies of certain minerals such as iron 
ore and zinc are imported although the United States 
is the leading producer of these minerals and probably 
has the world's largest deposits. The explanation for 
this importation may be foinul in the quality or econ- 
omies inherent in certain foreign ores. 

The United States leads the world in production 
of mica and also imports large quantities. This min- 
eral deserves special mention when considering .supplies 



152 



National Resources Planning Board 



of materials for the electrical machinery, equipment, 
and apparatus industries. In spite of a large domes- 
tic production of mica, the United States has been 
almost wholly dependent on foreign sources, especially 
British India, for supplies of mica splittings of all 
kinds, radio tube mica, condenser shot mica, "cigarette" 
mica, and other mica specialties. It is only from block 
or book mica that it is possible to produce the high- 
grade mica specialties needed in electrical machinery 
manufacturing, armament manufacturing, and commu- 
nication industries. These special kinds of mica are 
almost completely lacking among the domestic re- 
sources, or are too expensive to recover. Domestic 
mica, however, has been jiroduced in ample quantities 
to supply industrial needs for most of the ordinary 
uses. 

Material supplies are one of the primary reasons for 
the interdependence of nations, as well as of subna- 
tional areas. There are a few mineral resources whose 
distribution is exceedingly concentrated. For exam- 
ple, the world is primarily dependent on India for sup- 
plies of high-grade block mica; on Germany for 
potash; on Russia, India, and South Africa for man- 
ganese; and on relatively few areas for tin, nickel, 
platinum metals, chromite, antimony, sulfur, phos- 
phate, and mercury. 

Because of problems of supply, certain materials 
imported into the United States have been designated 
as strategic and critical materials by the Commodities 
Division of the Army and Navy Munitions Board.^^ 

Strategic materials are those essential to national de- 
fense, the supply of which in war would have to be 
drawn in whole or in substantial part from sources 
outside the continental limits of the United States, 
and for which strict conservation and distribution con- 
trol measures would be necessary. There are 14 ma- 
terials as follows, in this list:^* 



Table 27. — Share of world production and consumption and 
ratio of production to consumption of selected minerals in 
the United States, 1937 ' 



Antimony. 

Chromium. 

Coconut shell char. 

ilanganese, ferrograde. 

Manila fiber. 

Mercury. 

Mica. 



Nickel. 

Quartz crystal. 

Quinine. 

Rubber. 

Silk. 

Tin. 

Tungsten. 



Critical materials are those essential to national de- 
fense, the procurement problems of which in war 
would be less difficult than those of strategic materials 
either because they have a lesser degree of essentiality 
or are obtainable in more adequate quantities from 



[Based on 


physical volume] 




Metallic minerals: ' 
Antimony ore * 


Percent of 

world 
production 

3.0 

11.5 

.2 

1.0 
32 8 
11.6 
34.7 
25.2 
10.4 
.7 
12.6 
91.9 
.2 

4.6 

25.7 

.1 

8.4 
25.3 
30.4 

26.8 

1.8 

33.0 

78.5 

23.9 

34.6 

59.5 

31.9 

.2 

26.9 

9.7 

46.4 

89.8 

87.9 

.2 

62.7 

35.9 

9.6 

23.3 

83.2 

44.6 


Percent of 

world 

consumption' 

43.2 
20.3 
44.1 
63.0 
28.8 

«35.3 
23.4 
10.4 
16.1 
26.8 
36.8 
37.6 
21.7 

(•) 
43.5 
20.5 
54.6 
31.9 

57.2 
46.5 
38.4 
81.5 
23.7 
32.5 
60.0 
33.9 
11.5 
34.8 
12.6 
56.1 
89.8 
81.4 
.4 
60.8 
26.5 
17.6 
23.2 
53.9 

48.1 


Percent ratio 
of production to 
consumption - 

7.0 


Bauxite > _ 

Chromite ore * 


59.6 
.5 


Columbium and tantaliun ores--. 
Copper 


1.7 
121.0 


Oold 


(•) 


Iron ore 


98.4 




103.9 




100.0 


Manganese ore " 


4.2 
47.2 


Molybdenum 


249.8 


Nicltel' 


.5 


Platinum metals ' ' 


20.2 


Silver . 


m 


Tin' 

Timgsten ore<- 

Vanadium * 


.2 
41.0 

46.3 


Zinc 


97.1 


Nonmetallic minerals: 
Arsenious oxide 


48.4 


Asbestos s - - 


3.8 


Barite 


94.0 


Bromine -_ 


96.3 


Cement .. .. 


100.8 


Coal (bituminous and anthracite) . 
Feldspar, crude 


106.7 
95.5 




93.6 




1.9 


Gypsum, crude 


77.3 




77.4 


Mica, sheet and scrap * 


82.7 




100.1 


Natural gasoline 


108.1 


Peat . -- - 


37.1 


Petroleum 


103.2 




135.6 




52.7 


Rftlt (sndiiiTTi chlnride) 


100.3 




154.2 


Talc, pyrophyllite and ground 
soapstone 


92.7 







"Army and Navy Munitions Board, The Strategic and Critical Mate- 
Hals, March 1940 (mimeographed). Subsequently other materials have 
been designated by the Army and Navy Munitions Board or by the 
President as strategic and critical for procurement purposes only. 

" Ibid. 



Sources: U. S. Bureau of Mines, Minerals Yearbook, 1938, 1939, and 1940, Wash- 
ington; Statislicat Yearbook of the League of Nations, 1939-iO Geneva, 1940: Im- 
perial Institute, The Mineral Industry of the British Empire and Foreign Countries, 
Statistical Summary. t93G-S8, London. 1939. 

' The calculations in this table are based on statistics for the production and appar- 
ent consumption of primary minerals not including statistics on the recovery or con- 
sumption of secondary minerals. 

- Calculations are based on apparent consimaption. When reported consumption 
figures were not available, the world consumption was taken as equal to the world 
production of the particular mineral and the United States consumption was con- 
sidered as the domestic production plus the difference between imports and exports 
of the mineral. 

* Metal content of ores is used as base except where ores are indicated. Ores are 
used as the base only for those minerals in which the quality of the ore is fairl>' uni- 
form in all the producing areas. 

< Listed as a strategic mineral by the Army and Navy Munitions Boards. 

• Listed as a critical mineral by the Army and Navy Munitions Boards. 

6 Calculations not shown for gold and silver. Apparent consumption of these metaU 
is not strictly comparable to that for others because of the large amounts of gold and 
silver retained or transferred from storage for monetary uses. 

' Does not include ferruginous manganese ores, manganiferous ores, or manganif- 
erous zinc ores. 

' Includes platinum, iridium, osmium, osmiridium, palladium, rhodium, and 
ruthenium. 

domestic sources, and for which some degree of con- 
servation and distribution control would be necessary. 
The following 15 materials are included in this list : ^* 

Aluminum. Optical glass. 

Asbestos. Phenol. 

Cork. Platinum metals. 

Graphite. Tanning materials. 

Hides. Toluol.^ 

Iodine. Vanadium. 

Kapok. Wool. 

Opium. 



"> Ibid. 



Industrial Location and National Resources 



153 



Tahu; 2.S. — Yahte and percent distribution of principal general 
cuiiiiiwditics imported for consumption, United Slates, 1939^ 
(ranked in order of value within major commodity groups) 



Commodity 


Value 
(thousands 
of dollars) 


Percent 

of grand 

total 


Percent 

of group 

total 


Total, nil imports for consumption _ 


2. 276. 099 


100.0 






744,860 


32.7 


100.0 






Crude rubber, all grades 


180.926 
120.852 
49. 759 
49. 637 
47. 420 
47. 057 
36.918 
33. 182 
31.912 
23. 2S9 
17.811 
17. 603 
14. 936 
11.949 
10. 985 
7.026 
43. .594 


7.9 

5.3 

2.2 

2.2 

2.1 

2.1 

1.6 

1.5 

1.4 

1.0 

.8 

.8 

.6 

.5 

.5 

.3 

1.9 


24.3 


Raw silk- _. 


IS. 2 


Undressed furs 


6.7 




6.7 


Crude metals and ores , 

Raw hides and skins (except furs) ._- 


6.4 
6.3 




5.0 




4.4 


Cotton, sisal, and other vegetable fibers 

Crude pplroleiim 


4.3 
.3.1 




2.4 


Pulpwood, logs, and unmanufactured wood-. 
Nonmetallic minerals, not elsewhere specified. 
Gums, resins, and balsams 


2.4 
2.0 
1.6 




1.5 


Fertilizer materials 


.9 




5.8 








290, 840 


12.8 


100.0 






Coflee . - 


139. MK 
29. 083 
27.613 
21. 090 
20.207 
14. 331 
12. 504 
11.906 
8. 2.56 
6.303 


6.1 
1.3 
1.2 
.9 
.9 
.6 
.6 
.5 
.4 
.3 


48.0 


Binanas __ _ 


10.0 
9.5 


Tea 

Cattle .._ 


7.3 
6.9 


Fruits and nuts, except bananas-- 

Spices _.. _ _ 

Fresh or frozen fish- - _ 

Wheat and other grains - 

Other crude foodstuffs 


4.9 
4.3 
4.1 
2.8 

2.2 






SemimanuTactures, total 


4S6. 766 


21.4 


100.0 






Paper base stock (pulp) 


75, 922 
70. .591 
40.704 
34. 324 
32. 402 
25. 225 
24. 391 
23, 846 
23,834 
23. 428 
22.243 
19.302 
18.336 
1.5,326 
9,549 
7,222 
20.128 


3.3 

3.1 

1.8 

1.5 

1.4 

1.1 

1.1 

1.1 

1.0 

1.0 

1.0 

.9 

.8 

.7 

.4 

.3 

.9 


15.6 


Tin... 


14.5 


Copper 

Vegetable oils, e.\tracted .. 


8.4 
7.0 


Precious stones (not set) 


6.6 


Nickel _ _ , 

Sawmill and wood products 

Metals and alloys, not elsewhere specified 

Fertilizers.. 

Yarns and other textile semimanufactures.. . 

Leather, dressed fnrskins, and bristles 

Petroleum products 


5.2 
5.0 
4.9 
4.9 
4.8 
4.6 
4.0 


Coal-tar dyes and other coal-tar products 

Industrial chemicals 


3.8 
3.1 


Nonmetallic minerals, not elsewhere specified. 
Asbestos 


2.0 
1.5 


Other semimanufactures .. 


4.1 






Manufactured foodstufls and beverages, total 


313,336 


13.8 


100.0 


Cane sugar 


124,619 
57.333 
28.729 
20,498 
14. 802 
12,844 
12. 420 
10,953 
10, n2 
8,203 
12, 192 


5.5 
2.5 
1.3 
.9 
.6 
.6 
.5 
.5 
.5 
.4 
.5 


39 8 


Alcoholic beverages. 


18.3 


Meats and meat products 


9 2 


Fish and other prepared sea foods 


6.5 


Fruit and nut preparations 


4.7 


Cheese.. 


4.1 


Vegetable preparations. 


4.0 


Fodders and feeds 


3.5 


Vegetable oils and fats 


3.4 


Molasses 


2 6 


Other manufactiired foodstufls... 


3.9 






Finished manufactures, total 


440, 297 


19.3 


100.0 






Textile manufactures 


131.654 
126, 783 
17,589 
15,095 
12,603 
12, 218 
11,602 
10,218 
9,116 
7,899 
6,925 
6,834 
6,528 
44,750 
20,583 


6.8 
5.6 
.8 
.7 
.5 
.6 
.5 
.4 
.4 
.3 
.3 
.3 
.3 
2.0 
.9 


29 9 


Artworks... 


28.8 
4 


Machinery and vehicles 


3 4 


Lathes, shingles, and other wood products 


2.8 
2.8 


Iron and steel mill products 


2 6 




2 3 


Books, maps, and other printed matter 
Photographic goods 


2.1 


Household and personal effects, not for sale... 


1.6 
1 5 


Leather manufactures 


1 5 


Other finished manufactures 




U. S. products exported and returned 


4 7 







' General merchandise imports for consumption do not include imports of gold 
and silver ore, sweepings, bullion, or coin. The imports of gold in 1939 were valued 
at $3,574,659,000; of silver at $85,307,000. 

Source: Value data compiled from V. S. Department of Commerce, Foreion Com- 
merce and Namtdalim of the United Stales, 19S9. 



4147.SB— 4.V 



-11 



The strategic and critical material lists are subject 
to change as it becomes necessary to add new materials 
or possible to drop some that are already on the list. 
Discoveries of new sources, or development of substi- 
tutes, may remove the dependency on a given material. 
Once shellac, camphor, nitrates, and other materials 
were on tlie list, but scientific developments have re- 
moved dependence on foreign sources for these sub- 
stances. There is a possibility that silk, coconut shell 
char, mica, and perhaps a few others on the list may 
be removed because of scientific developments. 

Due principally to their compactness, their small 
proportion of total product in most cases, and their use 
in conjunction with domestic materials, the strategic 
and critical materials as a group have had only a 
minor influence on the location of industry. Probably 
the strongest pull has been exerted by importation of 
wool and hides, a factor that has been favorable to 
location along the Atlantic seaboard and especially in 
New England. 

Certain other foreign materials not on the list of 
strategic or critical materials, either because of ade- 
quate domestic supplies or because of lack of direct 
applicability for defense, do have decided locational 
significance. Overseas imports of sugar, crude petro- 
leum, iron ore, and copper have attracted industry to 
coastal locations, the main concentrations being at the 
eastern edge of the manufacturing belt. For some 
manufacturing using imported materials to produce 
for the export trade, inland locations would be 
disadvantageous. 

A few materials, for example, crude petroleum, are 
imported into certain areas and exported from others. 
Qualitative factors may partially explain this concur- 
rent inflow and outflow of materials. An extreme 
example is the shijDinent of rags for paper stock. High- 
grade rags are on pccasion imported, and low-grade 
rags exported on the same ships over the same routes. 
Where this qualitative factor is not present, one area 
may receive materials from abroad and another area 
may export them because of competing locational influ- 
ences similar to those which operate domestically. 

The value of the principal commodities imported 
for consumption in the United States in 1939 is shown 
in table 28. Those of special importance to location 
of industry are the crude materials and the semi- 
manufactures. The manufactured foods, beverages, 
and finished commodities, except possibly such goods 
as cane sugar, burlaps, and a few other textile manu- 
factures, are largely competitors of products of domes- 
tic industries. A chief attraction for the movement of 
such goods to an industrial area is the proximity of 
markets through cheap water transportation. On the 
other hand, almost all of the important crude materials 



154 



National Resources Planning Board 



and semimanufactures are imported because of domes- 
tic deficiencies in resources, or because of the necessity 
of obtaining certain materials from foreign sources 
during off-season periods. Crude materials, including 
crude foodstuffs, comprise almost one-half of the value 
of imports. Of these, rubber, silk, raw furs, raw wool, 
coffee, bananas, cocoa beans, and tea are the principal 
goods. Wood pulp, tin, diamonds, copper, and vege- 
table oils such as tung oil, coconut oil, and palm oil 
are the important semimanufactures. Domestic re- 
sources of all these, except possibly wood pulp and 
copper, are deficient and in some cases are completely 
lacking. The principal imported raw materials exert 
an influence on the location of the silk, woolen goods, 
rubber goods, leather goods, and vegetable oil process- 
ing industries. A large proportion of such industries 
conduct their activities within reasonably close dis- 
tances of their major markets and principal ports of 
material supply. And generally establishments of 
these industries are located on the fringes of their 
markets toward the part of the seacoast having a port 
of entry. 

Balancing of Requirements 

Some industries concentrate near sources of raw or 
semimanufactured materials, others are located pri- 
marily with reference to marketing, and still others 
show a tendency to locate near power sources or re- 
serves of skilled labor. The increased mobility of pro- 
duction factors in the modern industrial system, how- 
ever, has relaxed the ties of industry with materials, 
markets, power, or labor so that outright examples of 
industries located because of any one of these factors 
alone are few in number. 

With respect to materials the industrial economy is 
characterized by the large volume of consumption, by 
the considerable number of intermediate stages of pro- 
duction, and by the increasing availability of materials 
in nearly all areas. This latter factor is being solved 
to such an extent by modern transportation facilities 
that for many materials the effective radius of supply 
has been extended sufficiently to remove much of the 
importance of locating industry verj' close to basic 
sources. 

Because of their production by complex i:)rocesses, 
consumer commodities lose much of their identification 
with original material sources. This, however, is still 
not unqualifiedl}' true for all industries, for there are 
certain basic industries which remain to a considerable 
extent tied to sources of materials. Examples of these 
are steel, lumber, glass, nonferrous metal smelting, and 
grain milling industries. 

The location of basic industries in turn exercises a 
strong influence on the location of many service indus- 



tries. Often complete and important industrial areas 
grow in a given locality because of the location of one 
or more important basic manufacturing industries. 
The manufacturing activity itself in such areas plays 
the most active role in determining locational patterns 
and in determining in part which of several alternative 
locations of resources are to be used. 

The G8 principal raw-material-consuming industries 
considered earlier in this chapter have a common char- 
acteristic in that such industries usually are distributed 
in proximity to their raw materials. Thus a map of 
the areas producing lead ores corresponds somewhat 
closely to a map showing the location of lead smelters; 
a map of the principal dairy areas indicates also the 
location of creameries, of cheese plants, and of con- 
densed milk establishments; a map of cotton fields 
defines roughly the locations of cotton seed oil, cake, 
and meal plants; and a map of the principal forest 
areas indicates in some degree the locations of pulp mills 
and sawmills. In each case the concentration of 
maiuifacturing is proportional to the importance of the 
raw-material-producing area, for the plants draw their 
raw materials from a suitably large source. 

Iron ore, coal, and a few of the more abundant non- 
ferrous ores, because of the tremendous quantities con- 
sumed, seem to be the minerals of gi'eatest importance 
to location. The other minerals, for example, stone 
and sand, are either so widespread that industries using 
them do not require special locations near the major 
regions of their occurrences, or the proportion of their 
use with other materials is so small that they are im- 
portant onh^ within very wide cost limits. Eaw forest 
materials, because of their heavy phj-sical volume and 
great loss of weight in processing, usually attract first- 
stage manufacture to their sources. Some agricultural 
Ijroducts show a similar tendency. Thus, milling es- 
tablishments are often close to the jDrincipal grain 
producing areas. The same is true of meat packing 
establishments, but to a lesser extent, for they tend 
to balance the advantages of both nearness to sources 
of live animals and nearness to markets. The can- 
ning and preserving of sea foods is nearlj' always com- 
pleted very close to shore. In this case, as in the can- 
ning and preserving of fruits and vegetables, the per- 
ishable nature of the raw commodity usually forces 
the location of the jjrocessing establishment close to the 
source. 

It has been indicated that only part of the manu- 
facturing industries must locate near sources of raw 
materials, such as mineral ores, and that only approxi- 
mately 20 percent by number of the manufacturing 
industries defined by the Bureau of the Census have 
a prime interest in such locations. These industries. 



Imlustnal Location and National Resources 



155 



however, often exert much influence on other manu- 
facturing intUistries through assembly of semimanu- 
factured materials. There is considerable evidence 
that certain consumers of semimanufactured ma- 
terials ma}' locate close to the center of smelting, re- 
fining, and initial processing of the crude ores of the 
metal in which they are especially interested. Most 
of the heavy machinery and castings, for example, are 
produced in establishments located near blast furnaces. 
This tendencj- may result in the growth of an industrial 
area in and about the smelting center, as the basic in- 
dustry and the semimanufacturing processors depend- 
ent on it attract various auxiliary industries. Not all 
producers of heavy iron and steel machinery, however, 
locate near blast furnaces. Problems of transportation 
to markets or other factors may cause the industry to 
locate elsewhere, sometimes at a considerable distance 
from the chief sources of semimanufactured material. 
The agricultural implement industry and branch as- 
sembh' plants of the automobile industry' have been 
cited as examples. 

Economies in the utilization of materials and ad- 
vances in transportation have done much to reduce or 
even eliminate the necessity for users of semimanu- 
factured materials to locate near their chief sources of 
materials. Preparation of semimanufactured mate- 
rials to meet precise specifications enables manufactur- 
ers using such materials and having comjilicated mass 
production systems to obtain an uninterrui^ted flow 
of materials conforming to acceptable standards. 
Furthermore, many materials are made available in 
such form that there is minimum or no weight loss 
in the final processing stages. It makes little difl'er- 
ence whether an industrial establishment using such 
materials is located at the source of materials or at 
the most convenient marketing point if the costs of 
moving finished i)roducts and of moving the materials 
are approximately the same. 



Modern developments in making electric power avail- 
able over widespread areas and in producing fuels which 
are relatively inexpensive to transport have reduced the 
dependence of industries on fuel sources. Since required 
materials have become so easy to obtain, standardize, and 
manage, modern manufacturers have become far more 
concerned with other problems such as labor supply 
and ajiplication of craft skill to machines. Improve- 
ments in the utilization and assembly of materials, 
fuels, and power, then, tend to decrease the locational 
importance of extractive areas and to increase the im- 
portance of the market. In addition, technological 
changes have facilitated the development of complex 
industries using many materials and producing a va- 
riety of products. Because the assembly and use of 
many different materials in one establishment decreases 
the relative importance of any one material, other fac- 
tors in such cases tend to outweigh problems of loca- 
tion in respect to any one raw or semimanufactured 
material. 

It has been demonstrated that sources of raw mate- 
rials commonly are important factors influencing the 
location of those industries which are predominantly 
raw-material consumers. Such industries are likely to 
consume one or two dominant materials, a typical case 
being a raw material j^roper and a fuel; the locational 
attraction is likely to be reinforced by such factors as 
weight loss, perishability, and impossibility of substi- 
tution of materials. Industries operating in later 
stages of manufacture, even though they consume 
mainly a single material and produce only a single 
product, are usually more strongly influenced by con- 
sumption centers than raw-material-consuming indus- 
ti'ies. Industries which consume a variety of semiman- 
ufactures pursue their activities as a rule in areas where 
there is access to byproducts of other industries, to 
partly fabricated products, to equipment, and to 
markets. 



CHAPTER 7. POWER AND FUELS 

By Lincoln Gordon* 



The influence of energy resources on industrial loca- 
tion is in general similar to that of other materials 
entering into industrial processes, but several features 
peculiar to power and fuel give them special locational 
significance which warrants separate analysis. 

The resources considered in this chapter are coal, oil, 
natural and manufactured gas, and electric energy. 
The latter may be produced by one of the fuels, or 
may be hydraulically generated. 'It is evident that coal, 
oil, and gas may be employed as raw materials in the 
narrow sense, rather than as sources of energy (thermal 
or otherwise). Thus, in the smelting of iron ore, coke 
made from coal is used as a reducing agent as well as 
a fuel, while in the manufacture of carbon black, natu- 
ral gas is used as a raw material. In some instances, 
utilization as fuel is inseparably intertwined with utili- 
zation as material. The locational influence of a given 
material does not depend upon the nature of its utiliza- 
tion, but it is important to note that as sources of energy 
the materials here treated may be readily substituted for 
one another over a wide range, while as raw materials 
substitution is generally more difficult or impossible. 

The special locational characteristics of power and 
fuel are threefold. In the first place, all the energy re- 
sources except coal are transported in whole or in part 
by special methods peculiar to themselves. Pipe lines 
for oil and gas, and high-tension transmission lines for 
electric energy, follow a geogi-aphical pattern differing 
from the network of railways, waterways, and highways 
over which mo.st raw materials are carried ; this results 
in an unusual structure of transportation costs and 
charges. The peculiarities are particularly striking in 
the transmission of electricity, where geographical 
variations in rates are based less upon the combined 
costs of generation and transmission than upon the 
nature of the load and the rate policies of particular 
utility systems. 

Secondly, in their industrial uses, the energy re- 
sources often compete with one another and may be 
substituted one for another. For general heating pitr- 
poses, coal, crude or fuel oil, and natural gas are all 
widely employed ; for carefully controlled heating, elec- 
tricity and gas (natural or manufactured) each has 
its special advantages; for electricity generation, 
water power, steam (raised from coal, oil, or gas) and 



Internal combustion engines (gasoline or Diesel) all 
play a part. The locational influence of power and 
fuel, therefore, must be analyzed in terms of the energy 
resources viewed as an interrelated whole. 

In the third jjlace, fuel and power are wholly 
consumed in the process of manufacture, and conse- 
quently, imlike most raw materials, do not enter into 
the weight of the manufactured product. Moreover, 
transportation costs of coal, oil,^ and natural gas con- 
stitute a relatively high proportion of the delivered 
price, while zones of low-priced electric power are 
relatively narrow. Geogi-aphical variations in fuel and 
power costs are therefore very large. Although other 
factors often must be considered, heavy consumers of 
fuel or power tend to be locationally oriented toward 
low-cost power or fuel areas. 

Power and Fuel as Locational 
Factors in Manufacturing Industries 

The analysis in this chapter is confined to manufac- 
turing industries. Fuel and power play a negligible 
role in the costs of distributive industries, which are 
in any case necessarily market-oriented. The extrac- 
tive industries, while often consuming substantial 
quantities of energy, are bound to their sources of sup- 
plies. Only rai'ely would the selection of alternative 
mining sites be dictated bj' considerations of energy 
cost, since this factor is ordinarily insignificant by 
comparison with extraction costs, adequacy of trans- 
portation facilities, and relation to the market. The 
only other important industrial consumers of fuel and 
power not now classified by the Bureau of the Census 
among "manufactures" are the public utilities engaged 
in energy conversion — gas manufacturing ^ and elec- 
tric light and power. Limitations on transportation of 
manufactured gas and electric energy tend to orient 
these industries toward the market, although in the 
latter case, generating plants are sometimes placed at 
a substantial distance from metropolitan consuming 
centers in order to take advantage of low-cost mine- 
mouth fuel or cheap water power. 



•ConsuUant, National Resources Planning Board (Faculty Instructor 
In Government, Harvard University). 

1.56 



^ An exception should be noted for the case of tanker transportation 
of oil, wliich under normal conditions is very cbeap. 

^ The manufactured-gas industry was included in the Census of 
Manufactures until 1935, but subsequently eliminated. It has been 
excluded for all years in the comparative data presented in this 
ibapter. 



Industrial Location and National Resottrces 



157 



MILLIONS 
OF TONS 

420 



ENERGY CONSUMPTION IN MANUFACTURING 
INDUSTRIES, 1909- 1939 



(BITUMINOUS COAL OR EQUIVALENT) 



360- 



300 



240 



180 



120 



60 



TONS PER 
W46E EARNER 

70 



1555 PURCHASED ELECTRIC ENERGY 

I ^ PURCHASED MANUFACTURED GAS 

^^ WATER POWER 

I [ NATURAL GAS 

\/// FUEL OIL, GASOLINE, AND KEROSENE 

B BITUMINOUS COAL 
ANTHRACITE 



-TONS BITUMINOUS COAL AND 
EQUIVALENT PER WAGE EARNER 




60 



50 



40 



30 



20 



1909 1914 

SOURCE : TABLE I 



1919 



1929 



1937 1939 



Figure 61 



Physical Consumption 

Data on phj'sical quantities of energy consumption 
are available only back to 1909. The salient facts in 
those years for which census information -was assembled 
are condensed in table 1 and figures 61 and 62. Total 
energy consumption rose gradually in the pre-World 
War I period, became rapidly accelerated during the 
war, reached its peak in 1929, and has subsec^uently 
fallen off substantially. It must be remembered that 
these figures represent merelj' energj' consumed, rather 
than energy effectively delivered into manufacturing 
processes. Efficiency of fuel conversion, particularly 
in the case of coal, has enormously increased over the 
past quarter century.^ In steam-electric stations, fuel 
consumption per kilowatt-hour generated fell from 6.2 
pounds in 1902 to 3.5 pounds in 1917 and 1.39 pounds in 
1939. Although these dramatic savings were not fully 
matched in other areas, coal consumption per unit vol- 
ume of manufactured gas fell 33 percent between 1909 
and 1939, while in coke manufacture coal consumption 
per ton fell 5.5 percent during the same period. In the 



'Statistics on some aspects of improved fuel consumption efficiency 
are presented annually in the bituminous coal chapter of the Minerals 
Yearbook, Bureau of Mines, Department of the Interinr. I'ucl con- 
sumption in tile generation of electric energy is publisheil annually by 
the Federal Power Commission, in Electric Power Stntifilics. For a 
ceneral discussion and analysis, see F. G. Tryon and II. O. Kogers, 
■Statistical Studies of Progress in Fuel Efflciency," Trannactionn, Second 
World Power Conference, Berlin, in: 0. vol. VI. 



yeui-s since the first World War, coke consumption per 
ton of pig iron has been reduced by one-fifth. 

It is not unrea.sonable to estimate the over-all im- 
provement in efliciency of fuel consumption in manu- 
factures over the past two decades in the neighborhood 
of 50 percent. Thus the 8-percent reduction in energy 
consumption per wage earner between 1919 and 1939 
took place despite a probable increase of ahnost 40 
percent in the effective energy delivered per wage 
earner. So far as effect on industrial location is con- 
cerned, attention must of course be focused upon the 
actual quantities of energy resources consumed, re- 
gardless of improvements in conversion efficiency. In 
this connection, however, the reversal in 1937 of the 
downward trend in total consumption per wage earner, 
and the restoration of the upward tendency obtaining 
before 1919, suggests a tapering off in the rate of 

PROPORTION OF EACH ENERGY SOURCE 
TO TOTAL ENERGY CONSUMED IN 
MANUFACTURING INDUSTRIES, 1909-1939 

(ALL SOURCES REDUCED TO BITUMINOUS COAL EQUIVALENT) 



80 












75 


- 










70 






N^_BlTUMINOUS 
N. COAL 
















65 
60 








\ 










\ 


V 


55 


- 








\ 


15 


- 











10 






PURCHASED 
ELECTRIC-^ 
ENERGY ^7i^.. 


^.^^:r- 








^'^^ 




5 






FUEL ^■- ^y^ 

--•^ ^^^NATURAL 

y^ ~~ — _ „^ANTHRACITE 


— 





PURCHASE 


D MANUFAC 
- 


,^WATER POWER 

(PLANT 0*W 

TURED GASV 


r 



1909 1914 

SOURCE TABLE I 



1919 



1929 



1937 1939 



Figure 62 



158 



National Resources Planning Board 



T.1BLE 1. — Energy cnnsnniption in manufacturing iiuluslries, 1909-39 (bituminous coal or equivalent) 

[Quantities in thousands of tons] 





1909 


1914 


1919 


1929 


1937 


1939 




Quantity 


Percent 


Quantity 


Percent 


Quantity 


Percent 


Quantity 


Percent 


Quantity 


Percent 


Quantity 


Percent 


Anthracite ' 


14, 202 
151, 205 
4,895 
5,765 
9,497 
1,038 
6,843 


7.4 
78.2 
2.5 
3.0 
4.9 
.5 
3.5 


13, 730 
154,283 
7,413 
6,918 
7,949 
1,300 

12, 159 


6.7 
75.8 
3.6 
3.4 
3.9 
.6 
6.0 


13, 436 
188,233 

15,284 
8,602 
6,237 
1,618 

23,248 


5.2 
73.4 
6.0 
3.3 
2.4 
.6 
9.1 


9,334 

196. 780 

30, 190 

27. 613 

3,118 

2,083 

31.586 


3.1 
65.5 
10.0 
9.2 
1.0 
.7 
10.5 


6,419 

162, 961 

31,168 

40,805 

2.922 

2.207 

32. 836 


2.3 
58.4 
11.1 
14.6 

1.1 

.8 

11.7 


4.907 

137, 771 

,30, 607 

36, 190 

2,910 

2,289 

31,303 


2.0 




56.0 


Fuei oil, gasoline, and kerosene ' 

X.itural pas ' 


12.5 
14.7 


Water power (plant owned) * 

Purchased manufactured eas ' 


1.2 

.9 

12.7 






TotaL 


1^, 445 


100.0 


203. 752 


ion. 


256, 558 


100.0 


300, 704 


100.0 


279.318 


100.0 


245, 977 


100.0 


Tons per wage earner 


39.2 


40.1 


40.6 


39.0 


37.2 


37.4 







Source; Computed from data in the Census of Manufactures, except as otherwise 
noted. 

' Converted at 1 short ton anthr3cite=0.9782 ton bituminous coal. 

- Fuel oil converted at 1 barrel = 0.2288 ton bituminous coal, gasoline and kerosene 
at 1 barrel = 0.2162 ton bituminous coal. 

3 Converted at MCF natural gas=O.U4104 ton bituminous coal. In 1929 and 1937, 
quantities of natural gas used in the manufacture of carbon black, as reported in the 
Minerals Yearbook of the Bureau of Mines, added tu quantities reported in Census 
of Manufactures to make figures comparable with ntlier years. 

* Calculated on basis of horsepower of installed water wheels and hydro turbines 
converted into electric energy at use factor calculated by weighting major water, 
power-using industries in each year in accordance with their 1939 use factors. Use- 
factors were determined to be as follows, in kilowatt hours, per horsepower of installed 
water wheels and hydro turbines: 1909, 2,084 kilowatt hours; 1914,2,176 kilowatt hours; 



1919. 2.208 kilowatt hours; 1929, 2,366 kilowatt hours; 1937, 2.^F>2 kilowatt hours: 1939. 
2,611 kilowatt hours. Electric energy then converted into bituminous coal on same 
basis as purchased electric energj' (see footnote 6J. 

5 Calculated by multiplying gas utiHty companies sales to manufacturers by bitu- 
minous coal e'luivalent of fuels actually used per volume unit of gas manufactured 
in year concerned. Conversion equivalents were determined to be as follows, in 
tons bituminous coal per MCF manufactured gas: 1909. 0.0632 ton; 1914. 0.0586 ton; 
1919. 0.0452 ton; 1929. 0.0472 ton; 1937, 0.0436 ton; 1939. 0.0435 ton. Sales based on 
Census of Manufactures until 1929. and on American Gas Association reports since 
1929. corrected to elimioate industrial sales other than to manufacturers. 

8 Converted to bituminous coal equivalent on basis of actual consumption in each 
year of fuel per kilowatt-hour at fuel-electric generating stations. Conversion equiva- 
lents per 1.000 kilowatt hours stated in tons bituminous coal, are as follows: 1909, 
2.5 tons; 1914. 2.0 tons; 1919, 1.6 ton; 1929, 0.845 ton; 1937, 0.715 ton; 1939, 0.695 ton. 



Table 2. — Cost of fuel ' and purchased energy /» manufacturing industries, ISOO-IOSO 

[Millions of dollarsl 



Year 


Value of 
product 


Value added 
by manufac- 
ture 


Cost of 

materials, 

etc. 


Cost of fuel 
and pur- 
chased energy 


Cost of fuel 


Cost of pur- 
chased energy 


Ratio of fuel 

and pur- 
chased energy 
to value of 
product 


Ratio of fuel 

and pur- 
chased energy 
to value 
added by 

manufacture 


Ratio of fuel 

and pur- 
chased energy 
to cost of 
materials, 
etc. 


Ratio of pur- 
chased energy 
to fuel and 
purchased 
energy 


1S99 


11,104 
14,346 
20,068 
23,065 
80,054 
41,749 
58,288 
60,926 
60,472 
68,178 
39,830 
30, 557 
44,994 
60.713 
56.829 


4,662 
6.039 
8.192 
9.241 
23. 770 
17.303 
24.630 
25, 732 
26.427 
30. 737 
18, 601 
14.007 
18. 553 
25, 174 
24,711 


6.442 
8,307 
11,876 
13.824 
36,284 
24, 446 
33.658 
35, 194 
34,045 
37,441 
21,229 
16,550 
26,441 
35.539 
32, 118 


207 

325 

570 

666 

1,646 

'1,348 

'1.724 

' 1,853 

1,897 

1,974 

'1,276 

'947 

1.089 

1.426 

1.316 


197 

308 

!510 

'566 

'1,468 


10 

17 
'60 
'100 
'278 


Percent 

1.87 

2.27 

2.86 

2.89 

2.74 

'3.23 

'2.96 

'3.04 

3.14 

2.90 

'3.20 

'3.10 

2.42 

2.34 

2.32 


Percent 

4.43 

5.38 

6.97 

7.21 

6.92 

'7.78 

'6.99 

'7.19 

7.17 

6.42 

'6.85 

'6.76 

5.87 

.'i.76 

5.32 


Percent 

3.21 

3.92 

4.81 

4.82 

4.53 

'5.51 

'5.12 

'5.27 

5.56 

5.27 

'6.00 

'5.72 

4.12 

4.01 

4.09 


Percent 

4 8 


1904 ..- 

1909 

1914 

1919. 


5.2 
10.6 
15.0 
16 9 


1921 




1923 








1925 








1927 


'1,460 
1,498 


'437 
476 


23 1 


1929 . 


24 1 


1931 




1933 - 








1935 .. . 


708 
957 
851 


381 
468 
465 


35.0 


1937 


32 8 


1939 


35.3 







SouftCE: Cemus of Manufactures. 

1 Excluding coal and natural gas used as raw materials in the coke, fuel briquet, and 
carbon black industries. 

efficiency improvement. If this is true, a continued 
rise in the application of energy to indu.stry in the 
future will in all likelihood be accompanied by an 
absolute (although not proportional) increase in energy 
resource consumption. 

A particularly striking feature of the period covered 
in table 1 is the shift in relative importance of the 
various energy sources, which is shown graphically in 
figure G2. Industrial consumption of anthracite has 
fallen steadily, as better markets have been found in 
domestic heating and combustion equipment developed 
for domestic utilization of the smaller sizes. Plant- 
owned water power is no longer a considerable fraction 
of the total, although the development of private hydro- 
electric sites by electroprocess industries has recently 
increased the share of this energy source. The most 



' Distribution between fuel and purchased energy estimated. 
' Estimated. 



profound alteration over the 30 years is the precipitous 
decline in the proportion supplied by bituminous coal, 
and its replacement by natural gas, fuel oil, and pur- 
chased electric energy. This decline amounts to no 
less than 28 percent fi"om the high level of 1909. Even 
if the portion of purchased energy probably generated 
from coal is added in. the proportion of total energy 
supplied by bituminous coal has fallen from 82.7 per- 
cent in 1009 to 62.3 percent in 1939, a drop of almost 
one-quarter in the 30-year period.'' 



' Calculated for 1009 by allocating to bituminous coal a share of the 
purchased electric energy proportioned to tl>e ratio of steam engines 
and turliines to total prime movers in central senerating stations 
(estimated by linear interpolation from data in the Census of Etcctrical 
Industries, 1007 and 1012). For 10.39 the allocation is in proportion 
to ratio of coal-yenerated electric energy to total energy generated in 
central stations, as reported by the Federal Power CoiBmission, Elec- 
tric Power Statistics, 19S9. 



Industrial Location and National Resources 



159 



COST OF FUEL AND PURCHASED ENERGY IN 
^ MANUFACTURING INDUSTRIES, 1899 - 1939 



2000 



1600 



800 



400 




1899 1904 1909 

SOURCE TABLE 2 



'35 '37 1939 



Figure 63 



Although still outstripping its rival energy sources, 
coal no longer maintains the unquestioned leadership 
of earlier days. The relative rapidity -with -w'hich our 
petroleum and natural-gas reserves are being depleted 
will necessarily cause an eventual reversal in these 
trends. It may be expected, however, that a steadily 
increasing fraction of coal-produced energy absorbed 
by manufactures will be consumed in the form of pur- 
chased electricity, and the direct locational significance 
of differential coal costs will be correspondingly 
diminished. 

Costs 

Reasonably comparable data on total costs of fuel 
and purchased energy in manufacturing industries are 
available for scattered years back to 1899; they are 
presented in table 2 and figure 03. The rapid rise in 
expenditures for purchased energy, both absolute and 
relative, is particularly noteworthy, and gives renewed 
emphasis to the increasing significance of power cost 
differentials. 

As a general indication of the locational importance 
of fuel and power relative to other productive factors, 
the most useful single guide is the proportion of total 
costs absorbed by expenditures on energy. It is not, 
of course, to be supposed that this test affords a pre- 
cise quantitative measure of locational significance. 
Its use is subject to all the qualifications discussed in 



chapter 13, below. For each energy source alone, in- 
tensity of physical consumption (stated in terms of 
physical units per dollar value of product) provides 
a more satisfactory measure, and it is employed in 
the later sections of this chapter. For any particular 
industry or plant, special considerations may give to 
any factor an attractive force out of all proportion to 
its relative cost. But for industr}' as a whole, cost 
offers the only reasonably close approximation of com- 
parative locational attraction. 

The ratios tabulated in table ^, and charted in figure 64, 
show the trends in energy costs relative to total costs 
over the last 40 years. A rising trend to 1921 has been 
succeeded by a gradual decline. Three elements have 
doubtless contributed to this decline: improved econ- 
omy in fuel consumption, the declining trend in bitumi- 
nous coal prices i-elative to other prices, and the shift 
from fuels to purchased electric energy, which has 
become markedly cheaper during the period here con- 
sidered. Since the first and third of these elements 
are already slowing down, while the second has been 
reversed bj' statutory protection for coal prices, the 
future may well witness a gradual rise in the relative 
weight of energy costs. 

Even a substantial increase, liowever, will still leave 
these costs comparatively small. In recent years, in 
manufacturing industries, expenditures on fuel and 
power have amounted to less than 2i/2 percent of the 
total value of product, and it must be recalled that 
this latter figure excludes the costs of transportation 
to the market and of distribution. In the great ma- 
jority of industries, fuel and power are locationally 
insignificant in comparison with markets, raw ma- 
terials, and labor. 



COST OF FUEL a PURCHASED ENERGY AS PROPORTION 

OF (A) VALUE OF PRODUCT, (B) "COST OF MATERIALS. 

ETC.," a (C) VALUE ADDED BY MANUFACTURE, IN 

MANUFACTURING INDUSTRIES, 1899-1939 




1899 1904 

SOURCE TABLE 2 



i909 



r9l9 '21 '23 '25 '27 '29 "31 "33 '35 '37 1939 



Figure 64 



160 



National Resources Planning Board 



Table 3. — Cost of Jiiel and pvrchascd energy in mamifacluring industries, 1939, by industry groups 

[Values in millions of dollars] 



Value of 
product 



Fuel and purchased 
energy 



Cost 



Ratio to 
value of 
product 



Fuel 



Cost 



Ratio to 
value of 
product 



Purchased energy 



Cost 



Ratio to 
value 01 
product 



All industries.. 



56, 828. 8 



Stone, clay, and glass products 

Iron and steel and their products, except machinery 

Paper and allied products 

Products of petroleum and coal._ 

Chemicals and allied products _ 

Textile-mill products and other fiber manufactures 

Nonfcrrous metals and their products 

Rubber products 

Food and kindred products --. 

Machinery (except electrical) 

Furniture' and finished lumber products --- 

Lumber and timber basic products.. 

Electrical machinery 

Miscellaneous industries 

Transportation equipment except automobiles — 

Printing, publishing, and allied industries 

Automobiles and automobile equipment — 

Leather and leather products 

Apparel and other finished products made from fabrics and similar material. 
Tobacco manufactures _ 



440.2 
591.5 
019.6 
954.0 
733.7 
897.4 
672.9 
902.3 
604.0 
264.2 
267.7 
122.1 
727.2 
163.0 
882.9 
678.5 
, 047. 9 
389.6 
1, 358. 3 
,322.2 



116.3 
390.3 
84.6 
83.9 
98.6 
96.1 
52.9 
17.9 
161.9 
47.7 
16.7 
14.1 
21.6 
13.9 
10.1 
24.9 
35.5 
11.6 
15.4 
2.2 



Percent 
2.32 



850.5 



Percent 
1.50 



465.4 



Percent 
0.82 



8.08 

5.92 

4.18 

2.84 

2.64 

2.47 

2.06 

1.98 

1.63 

1.47 

1.32 

1.26 

1.24 

1.20 

1.14 

.97 

.88 

.83 

.46 

.17 



84.3 
316.2 

58.7 

69.5 

62.7 

42.3 

27.8 

7.7 

87.0 

22.8 

7.7 

7.1 

9.6 

6.1 

4.8 

6.7 

18.8 

6.9 

3.4 

1.2 



5.85 

4.80 

2.91 

2.35 

1.68 

1.09 

1.08 

.86 

.82 

.70 

.61 

.63 

.56 

.52 

.54 

.26 

.46 

.42 

.10 

.09 



32.0 

74.1 

25.8 

14.4 

35.8 

53.8 

2.5.1 

10.2 

74.9 

24.9 

9.0 

7.0 

11.9 

7.8 

5.3 

18.2 

16.7 

5.7 

12.0 

1.0 



2.22 

1.12 

1.28 

.49 

.96 

1.38 

.98 

1.13 

.VI 

.77 

.71 

.62 

.69 

.67 

.60 

.71 

.41 

.41 

.38 

.08 



Source : Census of Manufactures, 1939. 



On the othei- hand, certain compensatorj' considera- 
tions give to the energy resources more locational 
importance than appears at first glance. The geo- 
graphical variation in costs is unusually large; as 
shown below, it ranges from 3 cents to 28 cents per 
million Btu for heavy consumers of fuel, and 
from 4 mills to 26 mills per kilowatt-hour for industrial 
power consumers with comparable demand and load 
factors. It is evident that a shift from high-cost to 
low-cost areas offers the possibility of large savings. 
The total invested capital in manufacturing industries 
in 1929 has been esthnated at $50 billions.^ A 25 per- 
cent reduction in over-all fuel and power costs in that 
year would have amounted to $493,500,000, the equiva- 
lent of almost 1 percent additional return on capital. 
In the early years of mechanization, moreover, trans- 
portation of water power was impossible and that of 
coal extremely expensive, so that these factors exer- 
cised a locational influence far beyond their importance 
in total costs. Finally, and perhaps most important, 
a number of the heavy power and fuel consumers, for 
which these costs amount to a large fraction of. the 
total, are major basic industries which tend to attract 
about them clusterings of secondary industrial activity. 
Wlien the cost data are broken down by industries, 
there is at once apparent a wide diversity in the im- 
portance of energy expenditures. In table 3, the data 
are shown for the industry groups employed in the 
1939 Census of Manufactures, ranked in descending 
order of proportion of fuel and purchased energy costs 
to total value of product. This tabulation indicates 

•C. A. Bliss, The Structure of Manufacturing Production, National 
Bureau of Economic Research, New York. 1939, p. 11. 



clearly the tendency of the more intensive energy con- 
sumers to be found among the jjrimary industries. 
The same tendency is even more sharply demonstrated 
in table 4, which shows the leading individual industries 
ranked in the same order. The value of product of the 
27 industries with energy costs amounting to 5 percent 
or more of the total was $8,580,459,000, or over 14 per- 
cent of the value of product of all manufacturing 
industries. It is in this group that energy orientation 
is most likely to be found. 

To complete the over-all picture, table 5 shows the 
phj'sical consumption of the leading energy sources 
in 1939, by industry groups.^ The significance of these 
data in terms of orientation toward particular fuels 
or electric energy will be analyzed in the following 
sections of this chapter. 

Orientation Toward Fuel Resources 

The earliest significant effect of energy resources on 
the location of American manufacturing industries was 
undoubtedly exercised by water power. In the first 
period of industrial growth, wood, which supplied al- 
most all fuel needs, was virtually ubiquitous. Falling 



"In that year, for the first time, the Census of Manufactures re- 
ported data for electric energy generated in manufacturing plants as 
well as purchased electricity. The figures for electricity have been 
computed by adding together the quantities generated and purchased, 
and subtracting the quantity sold. There is consequently considerable 
duplication between electricity and the fuels, since most plant-generated 
electricity Is produced by the combustion of one or another of the 
fuels. Data for coke and manufactured gas have not been tabulated, 
since over 91 percent of the former and over 79 percent of the latter 
were consumed by the iron and steel industry alone. The only other 
large consumers of manufactured gas were petroleum refining (12.5 
percent) and coke (3.1 percent). The only large industri.il consumer 
of anthracite was the primary smelting and refining of z'nc in New 
Jersey and eastern Pennsylvania. 



Industrial Location and National Resources 



IGl 



Table 4. — Cost of fuel and purchased energy in selected manufacturing industries, 1937 ' 

[Values in thousands of dollars] 



Industry 



Value of 
product 



Fuel and purchased 
energy 



Cost 



Ratio to 
value of 
product 



Fuel 



Porcbased energy 



Cost 



Ratio to 
value of 
product 



Cost 



Ratio to 
value of 
product 



1. 
2. 
3. 
4. 

5. 
6. 
7. 
8. 

g. 

10. 

11. 

12. 
13. 
14. 
15. 
16. 
17. 
18. 
19. 
20. 
21. 
22. 
23. 
24. 
25. 
26. 
27. 
28. 
29. 
30. 
31. 
32. 
33. 
34. 
35. 
36. 
37. 
38. 
39. 
40. 
41. 
42. 
43. 
44. 
45. 
46. 
47. 



Coke oven products ' __ 

Blast furnace products - 

Bone black, carbon black, and lampblack 3_ 
Cement - 

Lime. 



Ice. manufactiured 

Clay products, other than pottery. 
Nonclay refractories 

Salt- 



Pulp (wood and other fiber) 

Smelting and refining, zinc, 

Sand-lime brick 

Wallboard and plaster (except gypsum). 
Glass. 



Minerals and earths, ground or otherwise treated. 

Chemicals, not elsewhere classified 

Dyeing and finishing, rayon and silk fabrics 

Woolen and worsted, dyeing and finishing 

Paper.. 



Foundry products.. 

Compressed and Mquefled gases 

Steel-works and rolling mill products 

Gypsum products. - 

Cast-iron pipe and fittings 

Iron and steel forgings 

Pottery, including porcelain ware 

Wood distillation and charcoal manufacture 

Glue and gelatin 

Wool scouring 

Electroplating 

Sugar, beet. 

Dyeing and finishing, cotton-fabric 

Fuel briquets 

Grease and tallow 

Paving materials — blocks (except brick and stone and mixtures) _ 

Marble, granite, slate, and other stone, cut and shaped 

Galvanizing and other coating 

Petroleum refining 

Coke-oven products 

Sugar, cane, not including products of refineries 

Cotton yam and thread 

Cotton, broad-woven goods 

Springs, steel 

Plumbers' supplies 

Files 

Asbestos products. 

Rubber goods, miscellaneous 



397, 925 

672,525 

18,854 

183,201 

35.022 

136, 542 

163,262 

28,457 

32. 741 

247, 192 

115,655 

1,618 

41, 049 

387, 710 

27. 161 

932,750 

57,599 

11,603 

957,940 

397, 303 

56,418 

1, 330, 491 

42,617 

61,118 

122,835 

94,726 

26, 145 

40,650 

4,550 

26,686 

107, 360 

204,052 

6,137 

52,269 

25,289 

79,006 

5,994 

; 546, 746 

357, 469 

29,151 

280,604 

967,110 

27,233 

.113,920 

13,653 

63,794 

242, 717 



272,202 

177, 492 

4,602 

34,317 

6. 055 

21,316 

24.854 

2.796 

2,552 

19, 189 

8,708 

122 

2,966 

26,742 

1,828 

62.599 

3,808 

731 

58,991 

24,297 

3,412 

191, 130 

2,379 

3,195 

6.301 

4,800 

1,308 

1,909 

210 

1,200 

4,843 

8,834 

238 

1,968 

949 

2,945 

219 

93.136 

12,986 

1,057 

9,354 

32, 377 

893 

3,617 

422 

1,936 

7,316 



Percent 
68.41 
26.39 
24.41 
18.73 
17.29 
15.62 
15 23 
9.83 
7.80 
7.77 
7.53 
7.54 
7.22 
6.90 
6.73 
6.71 
6.61 
. 6.61 
6.15 
6.12 
6.05 
5.74 
5.58 
5.22 
5.13 
5.07 
5.00 
4.69 
4.62 
4.49 
4.51 
4.33 
3.88 
3.76 
3.75 
3.73 
3.65 
3.65 
3.63 
3.62 
3.59 
3.35 
3.28 
3.17 
3.09 
3.04 
3.01 



270,359 

175,971 

4,572 

24,936 

4,745 

4,192 

20,696 

2,302 

2,298 

13,263 

6,082 

74 

1,830 

21, 138 

824 

35,443 

3,247 

608 

43,461 

17, 737 

358 

149, 450 

1,309 

2,419 

4,773 

3,823 

1,094 

1,739 

155 

326 

4,666 

7,323 

71 

1,360 

718 

618 

156 

83,665 

11, 143 

1,006 

1.551 

8.263 

610 

2,293 

259 

L179 

2.979 



Percent 
67.95 
26.16 
24.25 
13.61 
13.55 
3.07 
12.68 
8.09 
7.02 
5 37 
5.26 
4.57 
4.46 
5.45 
3.03 
3.80 
5.64 
5.51 
4.53 
4.47 
.63 
4.49 
3.07 
3.95 
3.89 
4.04 
4.18 
4.27 
3.41 
1.22 
4.35 
3.59 
1.16 
2.60 
2.84 
.78 
2.60 
3.28 
3.12 
3.45 
.60 
.85 
2.24 
2.01 
1.90 
1.85 
1.23 



1,843 

1.521 

30 

9.381 

1,310 

17, 124 

4,158 

494 

254 

3,926 

2.626 

48 

1,136 

5,604 

1,004 

27,156 

561 

122 

15,530 

6,560 

3,054 

41,680 

1,070 

776 

1,528 

977 

214 

170 

55 

874 

177 

1.511 

167 

608 

231 

2,327 

63 

9,471 

1,843 

51 

7.803 

24,114 

283 

1,324 

163 

757 

4.337 



Percent 

0.46 

.23 

.16 

5.12 

3.74 

12.55 

2.55 

1.74 

.78 

2.40 

2.27 

2.97 

2.76 

1.45 

3.70 

2.91 

.97 

1.10 

1.62 

1.65 

5.42 

1.25 

2.51 

1.27 

1.24 

1.03 

.82 

.42 

1.21 

3.27 

.16 

.74 

2.72 

1.16 

.91 

2.95 

1.05 

.37 

.51 

.17 

. 2.99 

2.50 

1.04 

1.16 

1. 19 

1.19 

1.78 



Source: Computed from data in Census of Manufactures, 1937. 

1 Includes all industries with expenditure for fuel and purchased energy exceeding 3 percent of the value of product, except industries operating exclusively on contractor 
commission. 

> "Cost of fuel" includes cost of coal used as a material. Data from Minerals yearbook, I9S9. 

' "Cost of fuel" includes cost of natural gas used as a material in the carbon black industry. Data on carbon black from Minerals Yearbook, 19S9, 



Table 5. — Consumption of fuels and electric energy in manufacturing industries, 1939, by indiistry groups 



All industries 

Food and kindred products 

Tobacco manufactures 

Textile mill products and other fiber manufactures 

Apparel and other finished products made from fabrics and 

similar materials - 

Lumber and timber basic products 

Furniture and finished lumber products 

Paper and allied products _ 

Prmting. publishmg and allied industries 

Chemicals and allied products — 

Products of petroleum and coal - 

Rubber products 

Leather and leather products... 

Stone, clay, and glass products 

Iron and steel and their products, except machinery 

Nonferrous metals and their products 

Electrical machinery 

Machinery (except electrical) 

Automobiles and automobile equipment - 

Transportation equipment, except automobiles 

Rliscellancous industries — 



Value of 


Bituminous coal 


Fuel oil 


Xatural gas 


Electric energy 


















product 


Consump- 


Tons per 
$1,000 value 
of product 


Consump- 


Barrels per 
$1,000 value 
of product 


Consump- 
tion (mil- 


Cubic feet 


Consump- 


Kilowatt- 


($000,000) 


tion (thou- 


tion (thou- 


per dollar 


tion ■ (mil- 


hours per 




sands of 


sands of 


lions of 


value of 


lions of kilo- 


dollar value 




tons) 


barrels) 


cubic feet) 


product 


watt-hours) 


of product 


56,828.8 


137,771 


2.42 


133, 774 


2.35 


881,830 


15.51 


70,868 


1.25 


10,604.0 


10, 570 


LOO 


11,325 


1.07 


79,133 


7.46 


6,388 


.60 


1,322.2 


243 


.18 


36 


.03 


16 


.01 


115 


.09 


3.897.4 


6,520 


1.42 


9,252 


2.37 


2.719 


.70 


6,800 


L-5 


3,358.3 


314 


.09 


437 


.13 


1,383 


.40 


356 


.11 


1,122.1 


385 


.38 


714 


.63 


232 


.21 


1,238 


1.10 


1,267.7 


1,407 


1.11 


503 


.40 


2,201 


1.74 


603 


.48 


2,019.6 


9,195 


4.57 


6,696 


3.32 


29,518 


14.62 


9,394 


4.68 


2.578.5 


413 


.16 


603 


.23 


2,189 


.85 


859 


.31 


3,733.7 


9,659 


2.59 


11,493 


3.08 


304,958 


81.68 


9,811 


2.63 


2, 954. 


63,767 


21.60 


38,261 


12.94 


- 118. 574 


40.14 


3,440 


1.16 


902.3 


1,848 


2.02 


671 


.74 


3,372 


4.14 


1,584 


1.76 


1,389.5 


999 


.72 


394 


.28 


859 


.62 


402 


.29 


1,440.2 


12,223 


8.49 


8,113 


5.63 


148,075 


102.82 


4.S52 


3.37 


6,591.5 


12,262 


LS6 


33, 055 


5.02 


122,466 


18.58 


12,238 


1.88 


2,572.9 


1,789 


.70 


4,550 


L77 


36,583 


14.22 


.^gse 


2.32 


1.727.2 


1,182 


.71 


1,284 


.74 


3,3.'iO 


1.94 


1,432 


.83 


3,254.2 


2,443 


.75 


2,993 


.91 


9.944 


3.06 


1.985 


.61 


4,047.9 


2.561 


.63 


1,621 


.40 


9,514 


2.33 


2,467 


.61 


882.9 


407 


.56 


1,0.'S9 


1.20 


1.071 


1.21 


482 


.55 


1,163.0 


494 


.42 


711 


.61 


5,412 


4.66 


466 


.40 



SotJBCE: Computed from data in Census of Manufactures, I9S9. 
' Encrgj- generated in plant plus energy purchased less energy sold. 

4H7SG— 43 12 



162 



National Resources Planning Board 



water, which was the sole source of mechanical energy 
in quantities larger th;ui could be supplied by man or 
beast, was necessarily utilized directly at the site. The 
geographical structure of New England industry, no- 
tably in textiles, shoes, and paper products, still reflects 
this early influence, although direct waterjjower drive 
of machinery has become relatively unimportant." 

It was in the second phase of American industriali- 
zation, when iron and steel came to the fore as the 
Nation's leading industry, that the broad outlines of 
the modern locational pattern were laid out. In this 
process, the position of the great Ai:)palachian coal 
fields played a leading part. It is no exaggeration, in- 
deed, to attribute to the conjunction of these coal de- 
posits with the iron ore on the Great Lakes waterway 
sj'stem a more profound locational significance than to 
any other single factor. The great basic iron and steel 
industry served as a pole of attraction for processing 
industries and stimulated in turn the growth of popu- 

' In 11)39, the Census Bureau reported 1.003,669 horsepower of hydro- 
turbines and water wheels iu manufacturing plants, of which 1.208,624 
horsepower, or 75 percent, were used to drire electric generators. Of 
the remaining 395.045 horsepower, over 280.000 horsepower were em- 
ployed in the paper and pulp industries, largely in Maine. 



lation and the development of transportation and other 
services, establishing the country's major industrial belt. 
A similar phenomenon on a much smaller scale has been 
witnessed in the area around Birniiiigliam, Ala. 

More recently, as has been shown above, coal has 
tended to decline in importance relative to the petroleum 
fuels and to purchased electric energy (much of which 
is generated from water jDOwer or fuels other than 
coal). The influence of this shift in fuels on the total 
geographical structure of industry is as yet relatively 
small, since alterations in the pattern necessarily occur 
but slowly. "Oil and gas," writes one authority, "have 
attracted to themselves comparatively little manufac- 
turing activity." * This is particularly true of oil, 
which in most areas, at the relative prices obtaining 
over the past two decades, is a considerably more ex- 
pensive fuel than either coal or natural gas. Natural 
gas, on the other hand, whether available at the fields 
or by pijje line, is substantially cheaper than coal ex- 
cept at the mine mouth, and, in terms of convenience 
and heat control, is clearly an ideal fuel. 

s National Resources Comtnittee, Energy Resources and National 
PoUi-v, 1939, p. 124. 




Prepared in office of the National Resources Committee 



Figure 65 



Indit.sfriid Locatian and National Resources 



163 






NATURAL GAS PIPE LINES. 1938 




Figure 66 



In the last two decades of the nineteenth century, 
gas field discoveries in Pennsylvania, Ohio, and Indiana 
led to a substantial industrial movement to those areas, 
stimulated by extremely low prices and local claims 
of "inexhaustibility." In the middle eighties, natural 
gas was furnished free in sections of Indiana, local 
communities bearing the costs of drilling in order to 
foster industrial development. The glass industry was 
particularly prominent in this movement, along with 
woodworking, small iron and steel manufactures, and 
brick and tile.^ Such cities as Marion, Muncie, An- 
derson, and Kokomo owe their industrial development 
largely to cheap or free natural gas during this era. 
Toward the end of the centurj% as reserves neared ex- 
haustion, some plants moved elsewhere, while others 
shifted to coal or to manufactured or mixed gas. 
Smaller connnunities were often left stranded, but in 
most cases a large section of the industrial development 
remained permanently. During the early years of the 
twentieth century, similar sliort-lived ''gas booms" oc- 
curred in some portions of Kansas and Oklahoma. 



• Kor .1 record of the rise and dodine of industrial use of Indiana 
natural cas, see Indiana Department of Oeoloey and Natural History. 
Annual Hrport, l.SSC-1908. 



In recent years, industrial development based on nat- 
ural gas has focussed in areas in which reserves appear 
adequate for several decades to come. Not only the 
carbon-black industry, for which natural gas is the 
raw material, and the glass industry, in which gas 
(either natural or manufactured) must be used for 
technological reasons, but a number of other heavy 
fuel-consuming industries are displaying a perceptible 
tendency to develop new units in the low-cost natural 
gas region of the Southwest. And as electrification 
proceeds ajiace, and the electroprocess industries gain 
in importance in the economy as a whole, low-cost 
water power in the I'acific States and the Soutliern 
Appalachians is rapidly gaining in significance as an 
attractive force to industry. Tims current trends sug- 
gest a reduction in the marked coal orientation of tlie 
past and, in so far as energy orientation is a significant 
factor, a dis])ersion of new jjlants away from the 
traditional industrial belt. 

Large geographical variations in fuel prices are a 
consequence of the limited area of the higher-grade 
natural deposits and high transportation costs. For 
coal, (ies])ite extremely low ton-mile rail freight rates 
and even lower costs for water iiaulage, transportation 



164 



National Resowxes Planning Board 



amounts on the average to about lialf the delivered 
price. Crude oil tanker transportation is normally 
very cheap, but pipe-line costs are estimated to be more 
than twice as high and railroad tank car rates at least 
six times as high. The natural gas pipe line network 
is limited in extent, and a large volume of surplus gas 
in the major producing areas is consequently available 
for industrial uses at very low cost. Oil and gas pipe 
lines are shown in figures 65 and 66. 

The resultant pattern is indicated by figure 67. This 
map shows on a comparable basis the cost in 1938 of 
various fuels used at selected power plants for raising 
steam, the different fuels being indicated by separate 
symbols. The location of the major coal, oil, and 
natural gas producing areas is also shown. Although 
these cost figures are affected in some measure by such 
factors as the size of power plant, the negotiation of 
long-term fuel contracts under particularly favorable 
or adverse conditions, and the suitability of stoking 
and combustion equipment for burning the lower-cost 
sizes and grades of coal, they provide on the whole a 
reasonably satisfactory portrait of the geographical 
structure of fuel costs. 

It will be noted that, in the case of coal, costs are at 
their lowest at the mines, and increase rapidly with 
increasing distance from the coal fields by rail, but less 
rapidly at points served by water transportation. In 
general, costs of 10 cents or less per million Btu are 
found only at the mine mouth, points from 11 cents 
through 18 cents occur either close to the mines or on 
developed waterways (inland or coastal), while points 
above 18 cents are at considerable distance from the 
coal fields and accessible only by rail. The highest 
coal costs indicated on the map are in inland Massa- 
chusetts, Minnesota, western Wisconsin, and eastern 
South Dakota. The unusual importance of transpor- 
tation in delivered coal costs is strikingly demonstrated 
by the range, which varies from 4 cents per million 
Btu in one portion of the southern Appalachian coal 
fields to a high of 28 cents in the areas mentioned above. 

The data for fuel oil are far less numerous than those 
for coal, and show a smaller price spread. Except for 
California, the major industrial fuel oil consuming 
regions are not the oil producing States themselves, 
where cheaper natural gas is employed by preference, 
but seaboard States accessible to tanker transportation. 
The only steam-electric plant reporting costs, where 
fuel oil is used as the sole fuel in an oil-producing 
region, is Port Arthur, Texas, with a cost of 13 cents 
per million Btu." Many plants in the oil regions 

'° A large number of small plants, botU within and outside of the 
oil regions, reported cost figures for oil used in internal-combustion 
engines. The cost per Btu of Diesel oil or gasoline, however, is far 
higher than for fuel oil, and the figures are not comparable with tliose 
shown on the map. 



burn both oil and gas, and in California, particularly, 
a large share of the fuel is doubtless oil. Data are 
unfortunately lacking to indicate the proportions used 
and their respective costs. For the oil plants alone, 
delivered costs around the Gulf and Atlantic coasts 
range from 16 to 22 cents per million Btu, generally 
increasing with the length of tanker haul. The rather 
small differential suggests a correspondingly slight 
degree of orientation of fuel consumers toward the oil- 
producing regions as such — a conclusion which is 
strongly supported by other evidence as well. 

By contrast with oil, natural gas is very heavily 
consumed in the immediate producing areas, and shows 
a very marked cost increase at distant points. In the 
Southwestern fields where this resource is most abun- 
dant relative to the market, and where billions of 
cubic feet are annually blown into the air, natural gas 
is obtainable for industrial purposes at 3 to 6 cents per 
million Btu. Noteworthy among these points are 
the Texas Panhandle, northern Oklahoma, and Jack- 
son, Miss." At other gas-consuming points, costs run 
as high as 16 to 21 cents per million Btu, while in 
some of the gas fields this fuel is not used for industrial 
purposes. 

The somewhat peculiar pattern of gas costs is a result 
of the location of pipe lines and of enormous geograph- 
ical differences in marketability. The average value 
of gas at the point of consumption in 1938 was 16.1 
cents per million Btu for general industrial use, 
compared with 74.2 cents for domestic use, 47.1 cents 
for commercial use, 4.3 cents for consumption in the 
oil and gas fields, and 0.9 cent for use in the carbon 
black industry.^^ While industrial sales are more lu- 
crative than the "dump" consumption in the field or 
in making carbon black, they rank far behind domestic 
and commercial use in attractiveness as markets. The 
Appalachian production, therefore, goes mostly into 
these uses. Only in the Southwest are reserves so 
great that large-scale industrial consumption can be 
expected for a substantial period in the future. As 
additional pipe lines are brought out from this area, 
the scope of industrial consumption can be broadened 
to some extent. Beyond a distance of a few hundred 
miles, however, pipe-line construction appears uneco- 
nomical unless a large share of the transported gas can 
be sold for domestic and commercial consumption. 

How far do these striking geographical cost differ- 
ences produce industrial orientation toward the lower- 
cost areas? An approximate measure of this tendency 
for industry as a whole is suggested by table 6, wnich 



"In the years since 1938, the Jackson field has f.illen off sharply 
in production, and shows siuus of approacliins exhaustion. 

^^ Computed from data in Minerals Yenrhook, lS-10, pp. 10G8-1UT1, on 
basis of l.()4."i Ktu p?r i-uliic ft. 



Industrial Location and National Resources 



165 







a 

M 



166 



National Resources Planning Board 



Table 6.- 



-Consumption of fuels in manufacturing industries, 
1939 





Consump- 
tion of fuels 


Cost per 
million 
B. t. u. 


Consump- 
tion per 
wage earner 


UNITED STATES 


Billions 
B. t. u. 
6, 367, 386 


Cents 
15.8 


Millions 
B. t. u. 

681 






GEOGRAPHIC DIVISIONS 


510,948 
309, 013 
123,612 

1,565.601 
4,52, 176 
218, 370 

1, 715, 751 
186,368 
285,618 


6.6 
12.1 
14.9 
16.1 
16.3 
16.8 
17.7 
18.4 
20.8 


1,940 


2. East South Central 


864 




1,785 


4. Middle Atlantic 


696 




458 


6. West North Central . -. 


671 


7. East North Central 


781 




413 




299 






STATES 

1 Texas 


336,974 

104, 949 

53,086 

28, 858 

152, 178 

182,439 

54,687 

16,915 

9,855 

59,843 

49, 290 

41,343 

948, 768 

' 1.54.284 

68. 980 

67, 052 

32, 726 

342, 694 

40. 037 

12.050 

316. 208 

14.014 

392. -241 

610. 157 

3.320 

111.5.57 

344. 305 

2.118 

224,578 

28,290 

29,409 

139,866 

52, 637 

3,071 

102,414 

66, 404 

13, 393 

12,147 

36, 270 

10, 203 

9. 945 

3.247 

28, 312 

5.082 

13. 700 

1.846 

24. 456 

4.493 

7. 626 


5.1 
9.1 
9.2 
10.5 
11.2 
11.2 
12.6 
12,7 
13.1 
13.6 
13.fi 
13.7 
15.0 
15.0 
15.1 
16.5 
16.7 
17.0 
17.0 
17.0 
17.1 
17.2 
17.5 
17.6 
18.0 
18.4 
18.4 
18.4 
18.5 
19.4 
19.4 
19.9 
20.0 
20.2 
20.4 
20.9 
21.2 
21.3 
21.4 
22.0 
22.6 
23.1 
24.8 
26.2 
27.6 
29.4 
32.4 
33.0 
43.6 


2,654 
1,474 


2. Louisiana 


3. Oklahoma - 

4. Utah 


1,883 
2,498 


5. West Virginia 


2,029 




1,562 




871 


8. Arkansas . . 


439 




2,829 




464 


11. Colorado 


2,078 
1 308 


13. Pennsylvania 


1 105 


14. CaU'ornia 

15. Missouri 

16. Virginia 

17. Rhode Island . . 


519 
386 
601 
308 


IK. Indiana 

19. Iowa 

20. Mississippi.. . . 


1,235 
613 
860 


21. Michigan 

22. Montana 

23. New York 


605 

1..528 

409 


24. Ohio 

25. New Mexico..-- 


1,020 
1,022 


26. Maryland 1 

27. Illinois 


788 
677 


28. North Dakota 


803 




518 


30. Georgia 


179 


31. South Carohna 


232 




304 


33. Minne.sota 


660 


34. South Dakota 


665 


36. Wisconsin 


510 


36. Connecticut- 


284 


37. Florida 


254 


38. Delaware 


596 


39. North Carolina 


134 




542 




1,631 


42. Nevada . ... 


2 971 


43. Maine 


374 


44. Idaho - -. - 


467 




246 


46. District of Columbia 


234 




271 




206 


49. Oregon 


120 







COST OF FUEL a CONSUMPTION PER WAGE 
EARNER, 1939, BY GEOGRAPHIC 
DIVISIONS AND STATES 



SODRCE : Census of Manufactures. 

presents the total fuel consumption in equivalent heat 
units, the unit cost, and the consumption per wage earn- 
er, by geographic divisions and States, arrayed in order 
of ascending unit cost. In figure 68 unit cost and con- 
sumption per wage earner are jjlotted against one an- 
other, on a double logarithmic scale, with lines of re- 
gression (a) for all the points, and (b) all points ex- 
cept Texas and Nevada.^^ The data shovr a significant 
inverse correlation between cost and intensity of con- 
sumption, the coefficient of correlation for the second 

" Elimination of these two points avoids considerable distortion, 
since the Texas data are thrown out of line by an enormous con- 
sumption of natural gas at "dump" priies in carbon black manu- 
facture, wliile Nevada has too small a number of wage earners to be 
comparable with other States. 



MILLIONS OF BT U 
PER WAGE EARNER 

3000 
2700 




35 40 45 50 



10 15 20 

CENTS PER MILLION BTU 

Figure 68 



line of regression (excluding Texas and Nevada) being 
— .712. The slojje of this line, which is 1.67, is an indi- 
cation of the elasticity of demand for fuels for all in- 
dustries taken as a whole. Since in any given indus- 
try, however, the elasticity of demand for fuels is 
likely to be quite small, fuel generally being required 
for teclmologicul reasons in approximately fixed pro- 
l^ortions to otlier factors, this correlation is in fact 
occasioned by the concentration of more intensive fuel 
consuming industries in the lower-cost area. "Wliile 
the correlation is far from perfect, and the use of 
States as units conceals a wide variation in costs within 
each State, the analysis none the less suggests a very 
far-reaching degree of general fuel orientation. 

Orientation of particular industries toward particu- 
lar fuels is more difficult to measure, in part because of 
lack of data and in part because of the admixture of 



Industnal Location and National Resources 



167 



Table 7. — Consumption of bituminous coal in selected 
manufacturing industries, 1939 



Table 8.- 



-Consumption of fuel oil in selected manufacturing 
industries, 1939 



Industry 



All industries -.- 

L Beehive cokc_ 

2. Oven coke and coke-oven byproducts. 

3. Sewer pipe and kindred products 

4. Clay products (except pottery) not 

elsewllere classified 

5. Brick and hollow structural tile 

6. Cement 

7. Lime 

8. Hardwood distillation and charcoal 

manufacturing 

9. Clay refractories, including refractory 

cement (clay) 

10. Nonclay refractories 

11. Salt -- 

12. Liquors, distilled — 

13. Corn sirup, corn sugar, corn oil, and 

starch 

14. Pulp mills; paper and paperboard 

mills 

15. Terra cotta 

16. Malleable-iron castings 

17. Mineral wool 

18. Rayon and allied products 

la. Sand-lime brick, block, and tile 

20. Reclaimed rubber 

21. Chemicals not elsewhere classified-.. 

22. Glue and gelatin 

23. Roofing tile.- 

24. Grease and tallow (except lubricat- 

ing greases) 

25. Coal-tar products, crude and inter- 

mediate 

26. Woolen and worsted manufactures — 

contract factories 

27. Fuel briquets 

28. Baking powder, yeast, and other 

leavening compounds 

29. Processed waste and recovered wool 

fibers — contract factories 

30. Tanning materials, natural dye- 

stulTs, mordants, assistants, and 
sizes - 

31. Condensed and evaporated milk 

32. Dyeing and finishing cotton, rayon, 

sUk, and linen textiles 



Value of 
product 



$56, 828. 807, 223 



4. 781. IW4 
342, 197, 303 
18, 295, 679 

4. 4.10. 202 
78,153,227 

192, 611.3IM 
36,971,171 

6,843,172 [ 

42, 191, 4.^ 
26. 906. 439 
27,530,172 
56, 080, 195 

119,408,253 

1,159,867,486 

3, 175, 310 

63, 450, 770 

8, 237, 553 

247, 065, 556 

1,915,878 

6,894.018 

839, ; 50. 366 

34 331,639 

1,824,881 

58, 226, 218 

42,917,034 

13, ISO. 533 

5, 287. 282 

31, 774. 637 
1, 449, 449 



42,164,716 
209, 755. 891 



271, 167, 139 



Tons of 
bitumi- 
nous coal 
consumed 



137,771,432 



1, 349, .503 

61, 463, 640 

715, 239 

124, 270 
2, 134, 720 
.5, 196, 964 

800, 846 

134, 703 

813,447 
482. 415 
493, 084 
537, 695 

1, 081, 630 

8, 723, 849 

23,496 

384.083 

56.125 

1.647,215 

12. 865 

42,314 

4, 74.3, 352 

191,219 

9,883 

258,902 

180, 964 

.55, 318 
20, 970 

122, 122 

5,544 



159, 771 
743, 372 



955, 516 



Tons per 
$1 ,000 value 
of product 



282.3 
179.6 
39.1 

27.9 
27.3 
27.0 
21.7 

19.7 

19.3 
17.9 
17.9 
9.6 

9.1 

7.5 
7.4 
7.2 
6.8 
6.7 
6.7 
6. I 
5.6 
5.6 
5.4 

4.4 

4.2 

4.2 
4.0 

3.8 

3.8 



3.8 
3.5 



Source : Census of Manufactures, 1939. 

this with other factors in the making of actual location- 
al decisions. Industries in which such orientation may 
possibly exist are indicated by tables 7, 8, and 9, which 
show the most intensive consumers (in terms of physi- 
cal units per dollar value of product) of bituminous 
coal, .fuel oil, and natural gas, respectively. 

The industries here listed in fact vary widely in tlieir 
tendency toward fuel orientation.'* Those in which 
fuel orientation is clearly the dominant factor are 
the consumers of fuels as raw materials: Coke 
ovens and bituminous coal ; carbon black and nat- 



" In this connection, the reader's attention is called to two con- 
venient sets of majis .allowing the location of specific industries. .\ 
publication of the Department of Commerce, Bureau of the Census, 
entitled. Maps of Selected Industries Reported- to the Census of Manu- 
factures, 1937 (1941), shows location of establishments, wage earners, 
and value added by manufacture for 39 industries. Of particular 
relevance to the present discussion are blastfurnace products, p. 11 ; 
steel works and rolling mills, p. 121 : chemicals, p. 21 ; glass, p. 4.s ; 
paper, p. 94; and pottery and china tiring, p. 101. The National 
Resources Committee, in The Ktructure o/ tlie Americ^in F.conomy, 
maps the location of establishments in selected industries in 19:^"). 
Particular attention is called to coke-oven produc ts. p. 49 ; cement, p. 
40 ; pulp, p. 54 ; and clay products, p. 3.''>7 : as well as a number of 
industries also mapped in the Census publication. The indicated 
locations may he compared with the location of coal, oil, and gas 
production as shown in figure 07. herein. 



Industry 



.Ml industries 

1. Brick and hollow structural tile 

2. Gypsum products 

3. Terracotta 

4. Petroleum refining. 

5. Fisb and other marine oils, cake and 

meal. 

6. Cane sugar, except refineries 

7. Cement 

8. Dyeing and finishing cotton, rayon, 

silk and linen textiles 

9. Paving blocks and paving mixtures; 

asphalt, creosoted wood, and com- 
position 

10. Forgings. iron and steel, made in 

plants not n[H'rated in connection 
with rollinu' mills .... ... 

11. Vitreous-china plumbing fixtures — 

12. Mineral wool 

13. Pulp goods (pressed, molded) 

14. Lime 

15. Blast furnaces products— steel works 

and rolling mills. 

16. Woolen and worsted manufactures — 

contract factories 

17. Steam and other packing; pipe and 

boiler covering 

18. Colors and pigments 

19. Chemicals not elsewhere classified... 

20. Enameling, japanning and lac- 

quering 

21. Sewer pipe and kindred products. .. 

22. Steel castings. 

23. Ice manufactured 

24. Coal-tar products, crude and inter- 

mediate .. 

25. Files.. . , 

26. Glue and gelatin 

27. Cork products 

28. Dyeing and finishing woolen and 

worsted 

29. Malt 

30. Explosives 

31. Hardwood distillation and charcoal 

manufacture 

32. Paper and paperboard mills — Pulp 

mills 

33. Hat bodies and hats, fur-felt. 

34. Glass containers ..... . 

35. Springs, steel (except wire), made in 

plants not operated in connection 
with rolling mills 



Value of 
product 



$56,828,807,223 



78, 153, 227 

46,241,980 

3,175,310 

2,461,126,549 

13,622,312 
33, 526. 898 
192,611,304 

271.167,139 



32. 754, 308 



104, 883, 196 

21.97S,821 

8. 237, 553 

3, 826. 393 

36,971.171 

3,270,821.877 

13, 156, 533 

37,170,483 
83,885,847 
839, 750, 366 

6,935.646 

18, 295, 679 

135, 466. 423 

130, 166. 312 

42, 917. 034 
11.293,946 
34.331.639 
17. 723, 584 

37, 437. 032 
58, 478. 581 
17, 053, 206 

6, 843, 172 

1, 159, 867, 486 
39, 500, 929 
158.271,647 



23, 044, 252 



Fuel oils 
(barrels) 



133, 773, 524 



1,532,530 

875,942 

55,893 

37. 156, 306 

169, 721 

408, 061 

2, 352, 493 

3,281,679 



392, 243 



1,201,879 

240. 278 

24. 038 

36,190 

315,991 

27, 387, 058 

109, 614 

301. 161 

664,866 

6,574,231 

53. 149 
132, 179 
960, 970 
874,317 

277, 156 

73, 679 

219. 8(3 

110,690 

224, 773 
346, 887 
395, 173 



6. 212, 799 
206.699 
795,200 



116,232 



Barrels fuel 

oil con- 
sumed per 
$1,000 value 
of product 



2.4 



19.6 
18.9 
17.6 
15.1 

12.5 
12.2 
12.2 



11.5 
10.9 
10.2 
9.5 
8.5 

8.4 

8.3 

8.1 
7.9 
7.8 

7.7 
7.2 
7.1 
6.7 

6.5 
6.5 
6.4 
6.2 

6.0 
5.9 
5.6 

5.6 

5.4 
5.2 
5.0 



Source: Census of Manufactures, 1939. 

ural gas; and (to a lesser extent) petroleum re- 
fineries and crude oil. In a second and far larger 
class, fuel has clearly played a major role in plant 
location, alonar with consideration of raw materials 
and markets. This class would include glass (nat- 
ural gas) ; claj' products (coal or gas) ; metal re- 
fining and fabrication and chemicals (coal and gas). 
In a third class, materials anil markets are of domi- 
nant importance, but materials are so widely available 
that fuel costs are enabled to play some part in loca- 
tional decisions: paper, ceiiient, and lime fall in this 
category. In a fourth class, finally, other factors are 
of such overwhelming importance that the locational 
significance of fuels is negligible despite the h.eavy con- 
sumption. Cases in point are manufactured ice (mar- 
ket-oriented), and naval stores and salt (material 
oriented). In importtince of secondary locational ef- 
fects. e.\erci.seil iiulirt'ctiy tlirnugh tiie nicdiuiii of fuel- 
oriented industries, coal far outranks the other fuels. 



168 



National Resources Planning Board 



Table 9.- 



-Consumption of natural gas in manufacturing 
industries, 19.ii) 



Industry 



All industries - — 

1. Bone black, carbon black and lamp- 

black 

2. Roofing tile.-- 

3. Cement 

4. Tableware, pressed or blown glass 

and glassware not elsewhere classi- 
fied ...- - 

8. Brick and hollow structural tile 

6. Glass containers --- 

7. Flat glass _ - --- 

8. Salt - -- 

9. Sewer pipe and kindred products. . . 

10. Floor and wall tile (except quarry 

tile) 

11. Hardwood distillation and charcoal 

manufacture 

12. Clay refractories, including refrac- 

tory cement (clay) 

13. Pottery products not elsewhere 

classified-- -- 

14. Wallboard and wall pla.ster (exc. 

gypsum) buildine insulation (ex- 
cept mineral wool) and floor com- 
position 

15. Hotel china-- - 

16. "VVhiteware- 

17. Terra cotta 

18. Lime _ 

19. Wood naval stores 

20. Mineral wool 

21. Clay products (except pottery) not 

elsewhere classified 

22. Custom slaughtering, wholesale 

23. Gypsum products 

24. Petroleum refining 

25. Chemicals not elsewhere classified-. - 

26. Carbon products for the electrical 

industry, and manufactures of 
carbon or artificial graphite 

27. Ice, manufactured 

28. Photographic apparatus and mate- 

rials and projection equipment 
(except lenses).. 

29. Minerals and earths, ground or other- 

wise treated 

30. Enameling, japanning, and lacquer- 

ing 

31. Porcelain electrical supplies- 

32. Blast-iurnace products — Steel works 

and rolling mills 

33. Primary smelting and refining of 

nonferrous metals.. -- 



$56, 828, 807, 223 



Valueofproduct 



14, 626, 876 

1. 824, 881 

192,611,304 



97. 317, 3«? 

78, 153, 227 
158, 271, 647 
102, 389, 012 

27,530, 172 

18, 295, 679 

17,658,885 

6, 843, 172 

42, 191, 454 

16, 593, 344 



36, 753, 840 
9, 359, 660 

27. 800, 677 
3,175,310 

36,971,171 

14, 114, 193 
8, 237, 553 

4, 450, 202 

1,932,722 

46,241.980 

2,461, 126, ,')49 

839. 750, 366 



18, 375. 580 
130,166,312 



133, 899, 429 
38, 903, 146 



6, 935. 646 
20, 817, 045 



3. 270, 821, 877 
956, 572, 486 



Natural gas 
(Mcubicfeet) 



881, 8.30, 178 



247, 254, 149 

1,519,042 

40, 288, 161 

19, 001, 375 

15. 254, 208 
28, 202, 009 

16, 307, 376 
4, 371, 145 
2, 486, 778 

2, 226, 524 

837,060 

4, 873, 605 

1, 820, 484 



3, 647, 113 
783,006 

2, 159, 169 
218, 393 

2,491,750 
906, 090 
451, 885 

235, 900 

99, 540 

2, 355. 789 

115,842,098 

37, 741, 344 



7.56. 225 
5, 033, 573 



4, 584, 813 
1, 303, 773 



228, 897 
654,500 



102, 032, 341 
29, 469, 975 



Cubic feet 
of natural 
gas con- 
sumed per 
$1,000 value 
of product 



16, 904. 
832.4 
209.2 



195.3 
195.2 
178.2 
159.3 
158.8 
134.3 

126.1 

122.3 

115.5 
109.7 



102.0 
83.7 

77.7 
68.8 
67.4 
64.2 
54.9 

53.0 

51.5 
50.9 
47.1 
44.9 



41.2 
38. 7 



34.2 
33.5 



33.0 
31.4 



31.2 
30.8 



SovRCE: Cfvsus of MavufactuTcs, 1£39. 

Little information is available fo show the influence 
of fuels on the location of individual jilants. Occa- 
sionally, however, this factor is emphasized in par- 
ticular locational decisions. One striking example is 
the selection by the International Nickel Co. of Hunt- 
ington, W. Va., as the location for a nickel refinery 
and rolling mill, constructed in 1922. In an intensive 
study, by the management, of the relative importance 
of various locational factors, fuels were given a weight 
of 330, as against 250 for labor, 100 for power, 100 for 
living conditions, 60 for supplies, 50 for climate, 50 
for transportation, 20 for taxes and laws, 20 for con- 
struction costs, 10 for water supply, and 10 for character 
of available site. "A plentiful supply of natural gas," 
it was said, "and the certainty of indefinite supplies 
of good quality low-sulphur bituminous coal, to replace 
gas and oil when this necessity arises, insure low fuel 
costs for the industry. The present and prospective 



future power development at hydroelectric stations also 
was strongly in favor of this location." ^^ 

Over recent decades, interfuel competition has fa- 
vored natural gas and oil at the expense of coal, and 
has undoubtedly contributed substantially to the no- 
ticeable southward drift of heavy fuel-consuming in- 
dustries. For direct heating or steam raising, the 
three major fuels are readily substitutable for one 
another, and the selection of fuel at a given location 
is generally simply a matter of delivered price plus 
costs of handling, burning, and waste disposal. Even 
at the same cost, however, the greater convenience and 
cleanliness of the petroleum fuels and the greater ease 
of heat control in special thermal processing may 
make the latter preferable. 

The relative importance of the various fuels in dif- 
ferent areas, which has been discussed in general terms 
in connection with figure 67, is shown more precisely in 
table 10 and in the accompanying pie map, figure 69. 
This map shows clearly the predominant use of natural 
gas in areas with low-cost surpluses, the limitation of 
fuel oil to regions accessible by water transportation, 
and the rapid decrease in importance of coal with in- 
creasing distance from the fields. Increased industrial 
utilization of natural gas in the Southwest is paralleled 
in contemporary locational significance only by the 
growth of electroprocess industries near low-cost water 
power. In the chemicals industry particularly, the 
Gulf coast has witnessed a rapid development since the 
close of "World War I. As one authority puts it: 
"Petroleum and natural gas in close association with 
essential raw materials and adjacent to seaboard or 
rivers where cheap water transportation is afforded to 
both domestic and foreign markets — that is the prac- 
tically unbeatable combination responsible for so much 
of the recent industrial development of the South- 
west.'" " A similar but less extensive development has 
occurred in southern California. The net effect of in- 
terfuel competition is not so much a displacement of 
older plants from the coal regions as a dispersion of 
fuel-consuming industries through the location of new 
units in the natural-gas areas. 

The Trend Toward Electrification 

Even more marked than the shift in emphasis from 
coal to other fuels is the trend toward increasing utili- 
zation of energy in the form of electricity. As shown 
in tables 1 and 2, the proportion of purchased elec- 
tricity to total energy consumption in manufacturing 
industries has risen from 3.5 percent in 1909 to 12.7 



" R. S. McBride. "Quantity Methods in Production of Quality Metals 
and Alloys." Chemical and Metallurgical Engineering, Vol. 29, Oct. T2, 
1923, p. 746. 

"Editorial, Chemical and Metallurgical Engineering, Vol. 41. -August 
1934, p. 397. 



Industrial Location and National Resources 



169 




PREPARED IN OFftCE OF THE MATIONAL RESOURCES PLANNING BOARD 



Figure 69 



percent in 1939 in terms of physical quantity, and from 
10.5 percent to 35.3 percent in terms of cost. The ex- 
tent of electrification is more far-reaching than is indi- 
cated by these figures, since a substantial share of the 
fuel consumption goes into the production of plant- 
generated electricity. In 1939, the only year for which 
data on the subject were obtained by the Census, the 
quantity of plant-generated energy consumed in manu- 
facturing industries amounted to 25,827 million kilo- 
watt-hours, bringing the share of electricity in total 
physical energy consumption to 20 percent. The cost of 
fuel consumed in plant generation of electricity in 1939 is 
estimated at $66,000,000, raising the share of electricity 
in total energy costs to over 40 percent." 

" Estimated by .Tllocatinp; plant-genoratcd enercy between fuel and 
water power in proportion to the capacity of fuel-operated and hydro- 
electric generators in the plants; converting the estimate for fuel- 
generated enerej- to bituminous coal at the conversion factor used in 
table 1 and to Btu at the conversion factor used in table 10 ; con- 
verting to dollars at the average cost of all fuels used In manufactur- 
ing industries. The estimate probably errs on the conservative side 
since the average efficiency of fuel conversion to electric energy in 
manufacturing plants Is undoubtedly considerably less than in central 
generating stations. 



So far as motive power alone is concerned, the in- 
crease in importance of purchased energy is even more 
rapid, as is shown by table 11 and figure 70. The in- 
crease in mechanization indicated by the rapid rise in 
horsepower per wage earner, tabulated in the last col- 
umn of table 11, has been paralleled since the turn of 
the century by a very marked increase in both absolute 
and relative importance of equipment driven by pur- 
chased energy. The relation of such equipment to 
other types of horsepower equipment is charted in 
figure 71.^* Figure 72, which shows the horsepower 
of electric motors in manufacturing industries, again 
demonstrates the increasing importance of purchased 
energy in the over-all picture. 

The locational significance of this trend toward elec- 
trification is manifold. The increasing use of energy 

'>The data as tabulated to some extent overstate the shift, since 
horsepower of motors run by purchased energy is being compared with 
horsepower of prime movers within the plant, and diversify of use 
over time permits the operation of more than one motor horsepower 
per hor.sepower of prime mover. No precise evaluation of the degree 
of overstatement Is possible, but it is believed small in comparison 
with the indicated trends. 



170 



National Resources Planning Board 



Table 10. — Consumption of fuels in manufacturing industries, 1939, by States, Btu equivalents 

[Quantities in billions of Btu] 



Total 
quantity 



Anthracite ' 



Quantity 



Percent 



Bituminous coal > 



Quantity 



Percent 



Fuel oil ! 



Quantity 



Percent 



Natural gas * 



Quantity 



Percent 



United States. 



New England — - 

Maine _._ 

New Hampshire, 

Vermont 

Massachusetts 

Rhode Island 

Connecticut 



Middle Atlantic. .. 

New York 

New Jersey 

Pennsylvania. 



East North Central. 

Ohio 

Indiana 

Elinois 

Michigan 

Wisconsin 



West North Central. 

Minnesota 

Iowa 

Missouri 

North Dakota 

South Dakota 

Nebraska 

Kansas 



South .Wlantic 

Delaware 

Maryland 

District of Colimibia. 

Virginia 

West Virginia 

North Carolina.-, 

South Carolina 

Georgia 

Florida 



East South Central- 
Kentucky 

Tennessee 

Alabama -.- 

Mississippi 



West South Central- 

.\rkansas,,, 

Louisiana 

Oklahoma 

Texas 



Mountain 

Montana 

Idaho 

Wyoming 

Colorado 

New Mexico, 

Arizona 

Utah 

Nevada 



Pacific 

Washington,. 

Oregon 

California 



5, 367, 386 



285, 518 

28,312 

13,700 

4,493 

139, 856 
32, 725 
66,404 

1, 565. 601 
392. 241 
224, 578 
948, 758 

1, 715, 751 
610. 157 
342, 694 
344, 305 
316, 208 
102, 414 

218, 370 
52,637 
40,037 
68,980 
2,118 
3.071 
10,203 
41,343 

452,176 
12, 147 

111, 557 

1,846 

67,052 

152.178 
36. 270 
29,469 
28.290 
13, 393 

309. 013 
54.687 
59,843 

182, 439 
12,050 

510. 948 
15, 915 

104, 949 
53,086 

336, 974 

123, 612 
14, 014 
5,082 
9,855 
49,290 
3,320 
9,945 
28,858 
3,247 

186, 368 

24,456 

7,626 

154,284 



111,405 



3, 492, 495 



65.1 



841, 974 



15.7 



921, 512 



Source: Computed from data in Census of Manufactures, 1939. 

1 .\nthracite converted at 22.21 million Btu per ton. 

3 Bituminous coal converted at 25.35 million Btu per ton. There is a substantial 
variation in the heat content of different coals, which is not taken into account in 
these figures. Lignite, in particular, averages about 14.9, million Btu per ton. 



6,419 
133 
600 
466 

2,798 
222 

2,177 

89, 751 
20,655 
26, 341 
42,732 

8,218 
2,332 
444 
1,888 
2,243 
1,333 

1,866 
244 
333 
311 



22 
955 

3,487 
155 
733 
67 
244 
244 

1,644 
200 
133 
67 

711 
133 
466 
67 
44 

677 
133 
44 



378 

222 
22 
22 



67 

'iii' 



155 

89 
22 

44 



4.4 
10.4 
2.0 

3^3 

5.7 
5.3 
11.7 
4.5 

.5 
.4 
.1 
.5 



.2 
2.3 



1.3 
.6 

3.6 
.4 
.1 

4.5 
. 7 
.5 
.5 

.2 
.2 



.1 

"i.'i 



181,303 
21,117 
10,368 
3,498 
87, 914 
13,917 
44,489 

1,11.3,220 
292, 108 
92, 756 
728, 356 

1,391,842 
500,637 
278, 799 
258, 190 
263, 513 
90,702 

121,300 
40,966 
28. 341 
42, 791 
1,876 
811 
4,081 
2,459 

342,580 

4,487 

83,452 

684 

63,426 

112,731 

33, 462 

25,933 

17, 669 

761 

263, 336 
43.501 
53,387 

161,302 
5,146 

5,374 
1,115 
456 
1,749 
2,053 

61,094 

4,183 

4.512 

2,358 

32.955 

!>32 

558 

13,410 

2,586 

12, 422 
11,129 
1.115 

177 



63.5 
74.6 
75.7 
77.8 
62.9 
42.5 
67.0 

71.1 
74.5 
41.3 
76.8 

81.1 
82.0 
81.4 
75.0 
83.3 
88.6 

55.5 
77.8 
70.8 
62.0 
88.6 
26.4 
40.0 
5.9 

75.8 
36.9 
74.8 
37.1 
94.6 
74.1 
92.3 
88.0 
62.5 
6.7 

85.2 
79.6 
89.2 
88.4 
42.7 

1.0 

7.0 

.4 

3.3 



49.4 
29.8 
88.8 
23.9 
66.9 
16.0 
5.6 
46.5 
79.6 

6.7 

45.5 

14.6 

.1 



97, 796 

7,062 

2,732 

529 

49,144 

18, 586 

19,738 

269,157 
53, 461 
105, 481 
110,214 

196, 467 
53.688 
48, 665 
41. 943 
41, 798 

10, 379 

31,722 

4,897 

1,467 

8,182 

101 

126 

950 

15, 993 

68, 510 
7,502 

26, 951 
1,095 
3,229 
7,144 
1,164 
3.336 
6,319 

11, 770 

13,815 
6,955 
1,504 
4,003 
1,360 

55, 998 
1.422 
22.274 
ll!065 
21,236 

18,284 
1,605 

548 
3,097 
1,913 

579 
2,813 
7,068 

661 

90.218 
13.224 

6,489 
70.505 



34.3 
24.9 
19.9 
11.8 
35.1 
.56.8 
29.7 

17.2 
13.6 
47.0 
11.6 

11.5 
8.8 
14.2 
12.2 
13.2 
10.1 

14.5 
9.3 
3.7 

11.9 
4.8 
4.1 
9.3 

38.7 

15.1 

61.8 

24.2 

59.3 

4.8 

4.7 

3.2 

11.3 

22.3 

87.9 

4.5 
12.7 
2.5 
2.2 
11.3 

11.0 
8.9 
21.2 
20.8 
6.3 

14.8 
11.5 
10.8 
31.4 
3.9 
17.5 
28.3 
24.5 
20.4 

48.4 
54.1 

85.1 
45.7 



93, 473 
26, 017 



67, 456 

119, 224 
53,500 
14, 786 
42,284 
8,664 



63.482 
6,530 
9,896 

17, 696 

141 

2,134 

5,150 

21,936 

37,599 

3 

421 



152 
32,059 



4,169 
795 

31. 151 
4,098 
4,486 

17, 067 
5.500 

448, 999 
13.245 
82. 175 
40.272 

313.307 

44,012 
8,204 



4,400 
14, 355 
2,209 
6,463 
8,380 



83,573 
14 



83,668 



6.0 
6.6 



7.1 

6.9 
8.8 
4.3 
12.3 
2.8 



29.1 
12.4 
24.7 
25.7 
6.6 
69.5 
50.5 
53.1 

8.3 



.2 

21.1 



14.7 
5.9 

10.1 
7.5 
7.5 
9.4 

87.9 
83.2 
78.3 
75.9 
93.0 

36.6 
58.6 



44.7 
29.1 
66.5 
65.0 
29.0 



44.8 
.0 



compared with 25.4 million Btu for bituminous coal. The figures for coal con- 
sumption in areas using low-grade coals are therefore somewhat inflated, and for those 
using high-grade coals deflated. 

3 Fuel oil converted at 6.294 million Btu per barrel. 

* Natural gas converted at 1.045 million Btu per thousand cubic feet. 



in the foi'm of electricity entails a coiTespondingly in- 
creased tendency toward power orientation. The in- 
creasing proportion of electric energy purchased from 
central stations, rather than generated at the plants, 
gives added weight to geographical differentials in in- 
dustrial power rates, which by no means follow the 
pattern of fuel costs. Electrification restores water 
power to a position of importance as a locational fac- 
tor, permitting direct competition of this energy re- 
source with the fuels. At the same time, the most 



intensive consumers of power are a highly specialized 
group of industries. Power orientation, therefore, de- 
serves analysis apart from that based on the other 
energy sources. 

Orientation Toward Power 

Analysis of power orientation is complicated by 
the fact that manufacturing plants themselves gen- 
erate a substantial portion of the industrially con- 
sumed electric energy, and no cost data are available 



Industrial Location mid National Resources 



171 





Table 11. — Poncr ec/uipm 


ent in manufacturiny industries, laJ/O- 


1939' 










Steam engines and 
turbines 


Internal combustion 
engines 


Hydroturbines and 
water wheels 


Equipment drive by 
purchased energy 


Total 


Horsepower 


Year 


Horsepower 
(thousands) 


Percent 


Horsepower 
(thousands) 


Percent 


Horsepower 
(thousands) 


Percent 


Horsepower 
(thousands) 


Percent 


Horsepower 
(thousands) 


Percent 


earner 




450 
700 
1,216 
2,185 
4,586 
8,190 
10, 918 
14,229 

15, 691 
17,040 

16, 701 
16,917 
16, 9M 

17, 362 
17,800 


40.9 
43.7 
51.8 
64.1 
77.2 
81.1 
82.1 
76.2 
69.9 
57.7 
50.5 
47.3 
43.6 
40.4 
34.9 






650 59. 1 






1,100 
1.600 
2,346 
3,410 
6,939 
10.099 
13,296 
18.676 
22,291 
29,507 
33,093 
35, 773 
38,826 
42,932 
61, 165 


lOO.O 
100.0 
100.0 
100.0 
100.0 
ICO.O 
100.0 
100.0 
100.0 
100. 
100.0 
100. 
100.0 
100.0 
100.0 


1.15 








900 
1,130 
1,225 

1.255 
1,454 
1,647 
1,823 
1,826 
1,765 
1,803 
1,801 
• 1,599 
1,560 
1,604 


66.3 
48.2 
36.9 

21.1 
14.4 
12.4 
9.8 
8.2 
6.0 
5.4 
5.0 
4. 1 
3.6 
3.1 






1.22 


1869 










1.14 












1.25 


1889 


9 

135 

289 

751 

989 

1,259 

1.224 

1,186 

1.171 

1.234 

1.813 


0.2 
1.3 
2.2 
4.0 
4.4 
4.3 
3.7 
3.3 
3.0 
2.9 
3.5 


89 

320 

442 

1,873 

3.885 

9,443 

13,365 

15, 869 

19. 132 

22,776 

29,888 


1.5 
3.2 
3.3 
10.0 
17.5 
32.0 
40.4 
44.4 
49.3 
63.1 
68.5 


1.40 


1899 - 


2 24 


1904 -- 


2.56 


1909 


2.98 


19U 


3.37 


1919 _. 


3.60 


1923 


4.03 


1925 


4.54 


1927 - 


4.94 




5.12 


1939 - 


6.48 



Source: Census of Manufactures. 

1 Variations in classification in different census years prevent these data from being 
perfectly comparable. The effect upon comparability of the Vnited States totals, 
however, is insignificant, and has been neglected in this tabulation. For a discussion 



of this point, see W. L. Thorp, "Horsepower Statistics for Manufactures." Journal 
of the American Slatislical Association. Vol. 24, pp. 376-385 (December 1929). 

' Estimated by C. R. Daugherty, in The Development of Horsepower Eguipmenl in 
the United Stales, V. S. Geological Survey, Water Supply Paper 579 (1928), p. 49. 



POWER EQUIPMENT IN MANUFACTURING INDUSTRIES, 

UNITED STATESJ849-I939 

RATED CAPACITY OF PRIME MOVERS AND MOTORS DRIVEN BY PURCHASED ENERGY 



MILLIONS OF 
HORSEPOWER 

60 



40 



20 







^1 EQUIPMENT DRIVEN BY PURCHASED ENERGY 
F77[ HYDROTURBINES AND WATER WHEELS 
KXI INTERNAL COMBUSTION ENGINES 

^ STEAM ENGINES AND STEAM TURBINES 



m 



-^- 




1849 1859 

SOURCE : TABLE II 



1869 1879 1889 1899 1904 1909 1914 1919 "23 '_27 ' 

Figure 70 



39 



172 

POWER EQUIPMENT IN MANUFACTURING INDUSTRIES, 
UNITED STATES, 1849-1939 

RATED CAPACITY OF PRIME MOVERS AND MOTORS DRIVEN BY PURCHASED ENERGY 

PERCENT PROPORTION OF EACH TYPE TO TOTAL 




1849 1659 

SOURCE TABLE 



I9S '23f27t 
•25 29 



Figure 71 



for this portion. In 1939, this quantity amounted to 
25,827 out of a total of 70,868 million kilowatt-hours, 
or 36.5 percent. For light consumers of power, pur- 
chase from central stations is almost always more eco- 
nomical than self-generation, and is preferred even at 
a slightly unfavorable cost differential in order to leave 
the risks of mechanical trouble and of changes in fuel 
and labor costs to be borne by the utility companies. 
For heavier consumers, self-generation is usually pre- 
ferred where exhaust steam can be used for heat proc- 
essing or water-gas manufacture, where wood waste, 
sawdust, or other fuels are available as byproducts, or 
where the local central station supply is inadequate or 
unobtainable on reasonable terms. The leading indus- 
tries in which reliance is placed upon plant generation 
for a large part of the energy needs are shown in 
table 12. While allowance must be made for possible 
differences in any given area between the price of 
central-station energy and the cost of plant generated 
energy, such differences are probably very small for the 
bulk of industry. The alternative costs of self-genera- 
tion by manufacturers, in fact, play a leading role 
in determining industrial power rates. Outstanding 
cases of large cost differentials exist in some mountain- 
ous regions, where the limited water-power sites have 



National Resources Planning Board 

POWER OF ELECTRIC MOTORS 
IN MANUFACTURING INDUSTRIES, 
1899-1939 




1899 1904 1909 

SOURCE CENSUS OP MflNUFfiCTURES 



1923 '25 27 29 



Figure 72 



all been developed by large power-using industries. 
For the most part, however, areas with low costs of 
self-generation also enjoy low industrial power rates. 

The geographical pattern of industrial power rates, 
shown in figure 74,^® displays a number of striking con- 
trasts with the pattern of fuel costs presented in fig- 
ure 7. There are, to be sure, large regions where low 
fuel costs and low electric rates go hand in hand. For 
the most part, however, there is no such consistent 
relationship. The dominant factor in the two lowest 
rate groups, below 8 mills per kilowatt-hour, is water 
power, and water power rivals natural gas in deter- 
mining the location of the third class, 8 to 10 mills. 
In the great coal fields, as well as much of the oil and 
gas country, the prevailing rates range upwards of 
10 mills. 



^'The rates shown are for a billing demand of 1,000 kilowatts and 
monthly consumption of 400,000 kilowatt-hours, representing a load 
factor of 62.5 percent. The areas mapped include all communities of 
10,000 or more population, with contiguous service areas and selected 
intermediate areas. The rates shown are for unrestricted service, not 
dependent upon off-peak use or other special allowance, and have been 
adjusted for comparability. The geographical rate relationships would 
be only slightly altered by the selection of other demand and con- 
sumption bases, although the absolute level would be raised or lowered. 
In interpreting these data, it should be remembered that a considerable 
fraction of industrial energy is purchased under special contract rather 
than at regular published rates. Cf. Federal Power Commission, Elec-y 
trie Rate Survey, Rate Series No. 4, Rates lor Electric Service to Com- 
mercial and Industrial Customers (1936), part 2. 



Industrial Location and National Resources 



173 



FEDERAL POWER COMMISSION 

NATIONAL DEFENSE POWER SURVEY 

ENERGY CONSUMPTION BY TYPE OF INDUSTRY 

1939, 1940. AND ESTIMATES FOR 1941 



BILLIONS OF KILOWATT. HOURS 

2 4 6 8 10 12 14 16 13 TO 




BILLIONS OF KILOWATT- HOURS 

2 4 6 e 10 12 14 16 18 20 



1941 

FerrousS Non Ferrous 
Metal and Products 



2 4 6 8 10 12 14 16 18 20 




2 4 6 3 10 12 14 16 18 20 



Petroleum and 
Coal Products 



2 4 6 8 10 12 14 16 18 20 





Rubber Products 



( 


; 


^ 


f 




10 12 14 16 18 20 


1939 


' 1 


















ii'M 


h 




















1941 


h 












1 


1 _ 


_i_ 


1 




Apparel and Textile 
Mill Products 



€% 



2 4 6 8 10 12 M 16 18 20 



Food. Tobacco and 
Kindred Products 



I i I I I I ' 



2 4 6 8 10 12 14 16 18 20 




Leather and 
Leather Products 




,2 4 6 



Lumber, Timber 
and Their Products 



mm 



10 12 14 16 18 20 



ijB 



2 4 e 


8 10 12 14 16 18 20 


lC-3'? 


h 




















1940 


k 




















19«I 


k 
















1 


1 



BILLIONS OF KILOWATT- HOURS 



2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 




GENERATED r- V =j 
PURCHASED ^^^1 



United States Totals 



SEPTEMBER 1941 



Figure 73 



174 

Table 12. — Plant generation and piiiehiises of electric energij in 
selected manufacturiny industries (10 J!)) 

[Quantities in miilions of kilowatt-hours] 



All industries 

Cane sugar refining 

Corn sirup, corn sugar, 

corn oil and starch 

Beet sugar - 

Cane sugar (except refin- 
eries) 

Rayon and allied prod- 
ucts 

Salt 

Glue and gelatin 

Matches -- 

Tanning materials, etc 
Hardwood distillation 
and charcoal manufac- 
ture 

Internal-combustion en- 
gines. - 

Saw-mills, etc 

Communication equip- 
ment 

Ammunition . 

Paper and pulp mills 

Jute goods (except felt). . . 

Coal-tar products 

Dyeing and flnishine, 

wool 

Cigarettes. 

Steam and other packing: 
pipe and boiler covering. 
Carpets and rugs, wool . . . 
Dyeing and finishing, cot- 
ton, rayon, silk, and 

linen ._ 

Chocolate and cocoa 

Liquors, distilled 

Soap and glycerine 

Wood naval stores 

Photographic .apparatus. . 
Generating, distribution 
and industrial appara- 
tus, electrical . . . _' 

Cement , 

Blast furnace products; 
steel works and rolling 

mills _ 

Petroleum refining 

Chemicals, not elsewhere 

classified 

Motor vehicles 

Beehive coke 

Primary smelting and re- 
iining of nonferrous 
metals 



Plant 
gener- 
ated 



284.8 
149.3 

14.3 

1.031.5 
55.8 
44.4 
25.7 
33.4 



55. 
824. .S 

83.1 
16.8 
6, 297. 9 
26.2 
33.5 

1.5.4 
44.5 

20.0 
40.3 



195.8 
80.2 
35.9 
61.0 

337 9 
90.7 



240.8 
1,319.2 



5, 680. 1 

1, 339. 2 

2, 873. 1 
1, 174. 4 

3.8 



1, 232. 4 



Sold 



Net 
plant 
gener- 
ated 



2,923.0 26,827.0 



4.9 
'il.2 



4.5 
2 3 
1.3 



4.1 
169.7 



1.9 
210.5 



4.6 
3.3 



.1 

1.4 



23.7 
11.2 
4.6 



14.1 
37 



23.5 
21.0 



1, 349. 6 

71.5 

142.8 

128.3 

1.9 



304.9 



195.8 

284.8 
138.1 

13.9 

1,027.0 
63.5 
43.1 
25.7 
S.'!. 3 



.50.9 
655. 1 

83.1 
14.9 
6, 087. 4 
26,2 
3.3.5 

10. S 
■ 41.2 

19.9 
47.9 



172.1 
69.0 
31.3 
61.0 

323.8 
53.7 



226. 3 
1, 298. 2 



4, 330 5 

1, 267. 7 

2, 730. 3 
1,046.1 

1.9 



927.5 



Pur- 
chased 



17.4 
11.6 

2.2 

211.9 
12.0 
11.9 
7.5 
11.2 



21.9 
312.4 

39.7 

6.9 

2, 973. 

14.3 

20.0 

7 1 
29.6 

17 8 
38.7 



146. 5 
58.0 
26.6 
53.6 

288.7 
51.2 



237.1 
1,402.4 



5, 119. 
1, 505. 1 

3, 806. 

1,420.0 

2 8 



3. 694. 3 



Total 



70. 867. 9 



302.2 
149.7 

16.1 

2, 238. 9 
65.5 
55.0 
33.2 
44.5 



14.8 

72 8 
967.5 

122.8 
21.8 
9, 060. 4 
40.5 
53.5 

17.9 
70.8 

37 7 
96.6 



318 6 
127 
57.9 
114.6 
612 5 
104.9 



463.4 
2, 700. 6 



9, 449. 5 
2, 772. 8 

6, 536. 3 

2, 466. 1 

4.7 



4, 621. 8 



Propor- 
tion 
plant 

gener- 
ated 



Percent 
36 



94 
92 



83 
82 



77 
75 



70 
68 

68 
68 
67 
65 
■63 

60 
68 

57 
55 



54 
54 
54 
53 
62 
51 



49 



46 
46 

42 
42 
40 



Source: Census of Manufactures, 1939. 

The outstanding feature of this picture is its hap- 
liazarci character. Low and high rate areas are inter- 
mingled/ without apparent reason. Rates below 10 
mills sometimes occur in areas devoid of cheap fuels 
or water power ; rates far above 10 mills occur despite 
an abundance of cheap fuels. The structure as a whole 
can be understood only as a product of the accidents 
of utility policy and the strength of industrial bar- 
gaining, together with the occasional impact of state 
regulation or of public power projects. 

The percentage range of power costs indicated in this 
sample is almost identical with that for fuels. Tacoma, 
Wash., at one end of the scale enjoys a i-ate of 4 mills 
per kilowatt-hour, while at North Attleboro, Mass., en- 
ergy under comparable conditions is sold at 26.4 mills. 
The concentration of rates in the modal groups, how- 
ever, i. e., 8 to 12 mills, is much greater than with fuels. 



National Resources Planning Board 

In consequence, as might be expected, orientation to- 
ward power is less sharply marked than fuel orienta- 
tion. A general ineasuie of the degree of jjower 
orientation is pre.sented in table 13 and figure 75, em- 
ploying the same method of analysis as table 6 and 
figure 8. The inverse correlation between unit cost of 
purchased energy and consumption per wage earner is 
very high, the coefficient for all points being -.760 and 
for all but Arizona, Montana, Nevada, and Wyoming -" 
almost -.80.-' The indicated elasticity of demand^ ex- 
cluding the four Mountain States, is slightly more than 
unity. The degree of power orientation thus sug- 
gested, while considerably less than with fuels, is 
nonetheless very substantial. 

Variations among particular industries in power 
needs, and consequently in tendency toward power 
orientation, are very marked. Consumption by indus- 
try groups has been shown in the last two columns of 
table 5; table 14 presents the leading power consumers 
among the Census industries, ranked in order of in- 
tensity of consumption. It is evident that in no indus- 
try here listed is power orientation the sole locational 
factor. In some, notably manufactured ice, market 
considerations are determining to the exclusion of all 
else. In others, such as cement, paper, and pulp goods, 
power costs are sufficiently influential on occasion to 
determine a choice between otherwise equallj^ satisfac- 
tory locations. In the production of carbon products 
and compressed and liquified gases, power costs are a 
major factor, rivalling in importance both materials 
and markets. 

In some instances, comparative power costs appear 
to play a larger role in locational decisions than is war- 
ranted by the actual importance of power to the in- 
dustries concerned. Since power rates are a matter of 
public record, and are often more easily ascertained 
than other costs, cheap power readilj' assumes a dis- 
proportionatel}^ attractive asjiect in the eyes of the site- 
seeking entrepreneur. This tendency is occasionally a 
subject for unfavorable comment in the trade litera- 
ture.*^ 

To find examples of industrial location where power 
is the sole central consideration, analysis must reach 
beyond the classification of the Census of Manufac- 
tures. The three broad Census groups, "Chemicals. 

» The.se four Mountain States have an unusually high consumption 
per wage earner, regardless of cost, because of heavy power demands 
for the refining of mineral ores. 

^ This correlation might perhaps be attributed to the large quantity 
discounts characteristic of electric rate schedules. In fact, however, 
consumption per wage earner by States is only very slightly correlated 
with consumption per establishment. The correlation established in 
figure 75 must therefore be due primarily to the orientation of 
intensive consumers toward lower cost areas. 

'^ See, for example. Ford Bates, "The Power-Cost Factor in Industry 
Location." ElirlrU-al Worlil, Vol. 92, p. 4.-i0. Septi'niher S. 111215: also 
Chemical and Metallurgical Engineering, Vol. 48, p. 88, May 1941. 



I 



Inditstr'ial Location and National Resources 



175 




176 



National Resources Planning Board 



Table 13. — Consumption of purchased electric energy in 
manufacturing industries, 1939 



United States 

GEOGRAPHIC DIVISIONS 

1. East South Central 

2. Mountain 

3. Paciflc...- - 

4. South Atlantic- 

5. Middle Atlantic-- 

6. West South Central 

7. East North Central 

8. West North Central 

9. New England 

STATES 

1. Montana 

2. Tennessee 

3. Washington 

4. Idaho 

6. Maine- - 

6. Louisiana 

7. West Virginia 

8. New York 

9. South Carolina _- 

10. Alabama - -- 

11. Oregon 

12. Nevada 

13. North Carolina 

14. Maryland - 

15. Georgia - 

16. California 

17. Arizona --- 

18. Pennsylvania 

19. Virginia 

20. Ohio 

21. Iowa - - 

22. Delaware - 

23. Texas.- 

24. Kansas 

25. Arkansas-- 

26. Indiana-.- 

27. Mississippi 

28. Michigan -- 

29. Kentucky - — 

30. Oklahoma - 

31. New Hampshire - 

32. Wisconsin --- -- 

33. Missouri - 

34. Illinois - 

35. Nebraska - 

36. Utah - 

37. Wyoming . 

3S. Minnesota - 

39. District of ColumbiA 

40. New Jersey 

41. Vermont - 

42. Rhode Island — 

43. Connecticut 

44. Massachusetts - 

45. Florida -- 

45. Colorado - — 

47. South Dakota 

48. New Mexico --- .-. 

49. North Dakota _. 



Quantity 
purchased 



Kw.-hr. 
45, 040, 075 



3, 787, 107 
1.065,388 
3, 263, 467 
5. 694, 100 
12, 949, 780 

1, 960, 990 
10. 882, 529 

2, 061, 200 

3, 385, 614 



573, 743 
282, 277 
935, 014 
135, .541 
S72, 342 
609. 400 
586, 743 
583, 291 
932, 4.';8 
067, 563 
387, 363 

22,968 
500. 831 
825, 141 
967, 605 
941, 090 
113,613 
750, 970 
691. 023 
603, 401 
460, 977 
104, 697 
969, .544 
280, 712 
183, 110 
514, 753 
170, 330 
500,564 
266,937 
198. 935 
175. 082 
899, 341 
727,009 
364, 470 
137, 481 

86, 731 

36. 427 
410, 963 

39,634 
G1.5, 519 
104, 785 
378,448 
687, 276 
407, 581 
146, 069 

86,442 

23, 72P 
9,925 

10, 326 



Cost per 
kw.-hr. 



Cents 
1.03 



'Consump- 
^tion per 
wage 
earner 



Kte.-ltT. 
6,711 



.76 
.90 
.96 
.99 
1.02 
1.17 
1.25 
1.35 



.42 
.48 
.68 
.70 
.74 
.78 
.80 



.92 
.93 
.96 
.97 
.99 
1.01 
1.01 
1.03 
1.03 
1.06 
1.09 
1.10 
1.10 
1.11 
1.13 
1.14 
1.16 
1.17 
1.21 
1.26 
1.27 
1.28 
1.28 
1.31 
1.31 
1.31 
1.32 
1.37 
1.37 
1.37 
1.40 
1.42 
1.49 
1.51 
l.,57 
1.77 
1.97 
2.36 
2.55 



COST OF PURCHASED ENERGY AND CONSUMPTION PER 

WAGE EARNER IN MANUFACTURING INDUSTRIES 1939, 

BY GEOGRAPHIC DIVISIONS AND STATES 



10,584 
15, 387 
7,236 
5,772 
5,756 
7,468 
4,957 
5,367 
3,550 



62, 567 
17, 306 
10,362 
12. 461 
7, 565 
8,557 
7,843 
6,872 
7,34E 
9.140 
6,089 
21,014 
5,554 
5, 825 
6,131 
6,536 
18,637 
5,636 
4,414 
6,022 
7,058 
5,134 
7.635 
8,879 
5,051 
5,459 
3,674 
4,788 
4,251 
7,076 
3,139 
4.477 
4,072 
3,964 
7,309 
7,607 
10,456 
5,153 
.5, 030 
3,727 
4,81G 
3, 561 
2,943 
3,186 
2,770 
3,645 
4,284 
3, 054 
3,916 



Source: Computed Irom datH in Ccnaua i! ManulnduTf!, 1939. 

not elsewhere classified," "Primary smelting and 
refining of nonferrous metals," and "Blast-furnace 
products ; steel works and rolling mills," although con- 
suming on the average only 7.8, 4.1, and 2.9 kilowatt- 
hours per dollar value of product, respectively, con- 
tain a number of electroprocess industries for which 
power costs are always a prominent and often the ex- 
clusive locational consideration."^ The extraordinarily 
high energy consumption relative to value of product 



KWH PER 
WAGE EARNER 

66,000 



60P00 
54,000 
48p00 
42,000 
36000 

30000 



24000 



18,000 



12,000 



6000 
5,400 
4300 
4,200 
3j600 

3000 



2^00 













































1 

ALL POINTS 










■ EQUATION: 


LOG Y= 3 846-1313 LOG X 








COEFFICIENT OF COBRELATION: 












r- -0.766 

1 1 






\ 




ALL POINTS EXCEPT 






ARIZONA.MONTANA, NEVADA S WYOMING-' | 


\ 


FOiiATlON inn Y = ?^flnfi-inc? i or, x 




\ 




COEFFICIENT OF CORRELATION: 






\ 






r=a- 


0.798 










. \ 


















\ \ 




• 














\ \ 




. 














\- \ 


















\ \ 


\ 
















\ 


\ 


















\!\ 




• 














\\ . 


















\\ 


^. 


; 
















."H\\ 




















^ 








— 




■*■ UNITED STATE 


3 




, s 


\. 






— 


— 








\^ 










• STATES 




















• 




\\ 


































■ 


\\ 







^ For a general survey of these industries in relation to electric 
energy, see Federal Power Commission. Poirer Requirements in Electro- 
chemical, ElectrometaUurgieal, and Allied Industries, 1938. This pub- 
lication contains a series of maps showing the location of the various 
electroprocess industries in 1S137. 



09 12 

CENTS PER KWH 

Figure 75 



for a number of leading electroprocess industries is 
shown in table 15. Other striking examples, for 
which production data are unavailable, are afforded 
by the two artificial abrasive materials, silicon 
carbide and fused alumina, for which the indicated 
energy consumption per dollar value of product is no 
less than 128.6 and 56.1 kilowatt-hours, respectively.-* 
The major production of these materials is at low- 
cost hydroelectric power sites in Canada, whence they 
are imported into the United States for fabrication 
into grinding wheels, grindstones, and the like. Other 
important electroprocess industries are electric furnace 



'* Computed from iliid.. table 3, p. 14. 



Induntrlal Location and National Resources 

Table 14. — Consumption of electric energy in selected maniifactxiring industries, 1939 



177 



Industry 



All industries 

Cement -.. 

Reclaimed rubber _ 

Pulp foods (pressed, molded) 

Ice manufactured- ,'. 

Carbon products for the electrical industry and manufactures of carbon or 

artificial graphite - 

Compressed and Uquefied gases, not made in petroleum refineries or in natural 

gasoline plants... 

Chemicals not elsewhere classified 

Paper and papcrboard mills, pulp mills 

Rayon throwing and spinning— contract factories 

Wallboard and wall plaster (ejcept gypsum), building insulation (except 

mineral wool) and floor composition 

Rayon and allied products 

Si'ik throwing and spinning and contract factories... 

Primary smelting and refining of nonferrous metals 

Cotton yarn 

Cotton broad woven goods » 

Wood naval stores .-. 

Steel castings 

Custom slaughtering, wholesale 

Blast furnace products— steel works and rolling mills 

Gypsum products 

Lime 

Processed waste and recovered wool fibers — contract factories 

Minerals and earths, ground or otherwise treated _ 

Com sirup, corn sugar, corn oil, starch 

Flat glass 

Jute goods (except felt) 

Rayon broad woven goods — contract factories 

Salt 

Ola.ss containers _ 

Silk broad woven goods — contract factories 

Fuel briquets _ _ 

Hardwood distillation and charcoal manufacturing _ __ 

Bone black, carbon black, and lampblack 

Brick and hollow structural tile 

Woolen and worsted mfg. — contract factories- 

Cotton thread _ 



$56, 828, 807, 223 



Value 



192, 611, 304 
6,894,018 
3, 826, 393 

130, 166, 312 

18, 375, 580 

53, 364, 936 

839, 750, 366 

1, 159, 867, 486 

3, 066, 274 



35, 

247, 

15, 

956, 

198, 

869, 

14, 

135, 

1, 

3, 270, 

46, 

36, 

1, 

38, 

119, 

102, 

16. 

5, 

27, 

158, 

1, 

5, 

0, 

H, 

78, 

13, 

61, 



753, 840 
065, 656 
853, 452 
572, 486 
940. 444 
354, 2S5 
114,193 
466, 423 
932, 722 
821, 877 
241, 9S0 

971. 171 
449, 449 
903, 146 
408,253 
389, 012 
897, 414 
306, 825 

530. 172 
271,647 
101,949 
287,282 
843, 172 
626, 876 
1.53,227 
156, 533 
376, 151 



Electric energy 



Generated 
in plant 



Kw.-kr. 
28, 749, 939, 758 



1, 319, 235, 603 

2,000,000 

1, 358, 798 

69,551,111 



11, 182, 373 

2. 873. 105, 538 

6, 297, 943, 284 

1,619 

10, 943, 328 

1,031,504,701 

2, 646, 750 

1, 232, 353, 237 

43,419,841 

862,412,432 

47,461,068 

33, 032, 825 

500,000 

5. 680, 080. 722 

18,091,184 

9, 004, 875 



4,201,977 
284, 7S2, 920 
88, 915. 677 
26, 167, 000 
629, 340 
55, 792, 387 
42,977,311 



1. 728. 900 
11,143,805 

2, 050, 830 
10, 334, 640 

8,801.928 
32, 076, 356 



Sold 



A'w'.-Ar. 
2, 922, 939, 919 



21, 049, 500 
"3," 996," 682" 



142, 760, 068 
210, 499, 793 



4, 493, 635 



304, 883, 296 
3,478,671 

113. 422, 298 

6,157,8.39 

49,764 



1.319,587,089 
119,949 



6.000 
12, 071, 800 



2, 250, 398 
22, 132 



95, 600 



389, 085 
611.020 



Purchased 



Ku-.-lir. 
45, 040, 866, 703 



1, 402, 367. 970 
81, 650, 137 
43, 586, 522 

1, 359, 896, 132 

165, 436, 946 

412, 647, 411 

3, 80.5. 981, 196 

2, 972, 968. 641 

20, 294, 264 



197, 

211, 

74, 

3, 694, 

766, 

2, 651, 

11, 

450, 

6, 

5,118, 

114, 



17, 

177, 

14, 

11, 

12, 

320, 

2, 

9, 

3, 

29, 

154, 

19, 

68, 



482, 127 
918.743 
392, 629 
314, 367 
128, 762 
280,915 
435, 552 
836, 485 
662, 695 
980, 842 
938, 913 
824, 618 
927, 816 
745, 502 
386, 893 
370, 757 
287. 002 
950, 326 
006, 490 
268, 976 
583,858 
741,515 
844, 878 
240, 306 
639,118 
828, 406 
ISO, 555 



Net 
consumption 



Kw.-kr. 
70, 867, 866, ,M2 



2,700.554,073 
83, 650. 137 
44, 945, 320 

1, 425, 460, 661 

165, 436, 946 

423, 729, 784 

6, 636, 330. 666 

9, 060, 402, 132 

20, 296, 783 

208, 425, 465 

1, 238, 929, 809 

77, 039, 379 



806, 

3,400, 

62, 

483, 

6, 

9,449, 

132, 

106, 

3, 

102, 

302, 

254, 

40. 

12, 

65, 

363, 

2 

iT! 

14, 
31, 

164, 
28, 

100, 



069,932 
271,049 
738, 781 
819,546 
062, 695 
474. 475 
101,148 
S29, .523 
927, 816 
947, 479 
163,813 
214, 634 
444, 002 
579, 066 
548, 479 
224, 1,55 
583. 8.58 
470, 415 
893, 083 
291, 136 
.584, 673 
019,314 
265,911 



Kilowatt- 
hours con- 
sumed per 
dollar ol 
value of 
product 



1.2 



14.0 
12 1 
11.7 
11.0 

9.0 

7.9 
7.8 
7.8 
6.6 

5.8 
6.0 
4.9 
4:8 
4.1 
3.9 
3.7 
3.6 
3.1 
2.9 
2.9 
2.9 
2.7 
2.6 
2.5 
2.5 
2.4 
2.4 
2.4 
2.3 
2.3 
2.2 
2.2 
2.1 
2.1 
2.1 
2.0 



Soubce: Census of Manufactures, 1939. 

Table 15. — Production, value o/ product, and electric energy 
consumption in selected electroprocess industries, 1935 



Industry 


Produc- 
tion 


Value of 
product 


Electric energy 
consumed 


Kilowatt- 
hours per 
dollar 
value of 
product 


Calcium carbide 


Short tans 
147, 092 

216, 622 
69,648 
121,582 
2.121 
287, 520 
207, 380 


Dollars 
6, 234, 380 

23. 476, 583 
22. 070. 000 
10. 456, 052 

1, 272. 000 
11.263.248 

7, 961, 186 


Kw.-hr. 
461. 000. 000 

1, 220. 000. noo 

1, 128. 967. 000 
470. 465. 000 
42.412.000 

} 444. 000, 000 


74 5 


Ferroalloys made in electric fur- 
naces » . 


51 8 


AliiTninnni 


51 2 




45.0 




33.4 


Electrolytic caustic soda 




Chlorine' 









' Most chlorine is produced jointly with caustic soda in the electrolysis of brine. 
,S.iUicce: rroductinn data from Minerals Vearhook : friiM/s of Mntiu- 
factures ; and Federal Power Commission. Power Requirements in Elec- 
trochemical. Elcctromctallurfiical, and Allied Industries, table 3, p. 14. 
Value data from Bureau of Mines and Census of Manufactures. Energy 
consumption data from Federal Power Commission, loc. cit. 

steel, superphosphate fertilizer manufacture, and vari- 
ous explosives and minor metals." 

The electroprocess industries as a whole constitute 
a rapidly expanding sector of the American economy. 
In the 12 years from 1925 to 1937 the production of 
aluminum increased 109 percent, of magnesium 1,760 
percent, of electric furnace feri'oalloys 163 percent, of 

="Tlie electrolytic refining of copper, while technically an electro- 
process industry, is not economically one. since the consumption of 
energy per dollar value of product is only l.G kilowatt hours. 



crucible and electric steel 67 percent, of electrolytic 
zinc 48 percent, of calcium carbide 51 percent, of electro- 
lytic caustic soda 194 percent, and of chlorine 445 per- 
cent.-^ This expansion, moreover, was all prior to the 
war, which is magnifying manyfold the demand for 
the light metals, high-grade steels and ferroalloys, and 
many electrochemical products. It is also worthy of 
note that where electrochemical processes compete di- 
rectly with other processes as in caustic soda manufac- 
ture, or where electroprocess manufacture achieves a 
higher-grade (although somewhat more costly) prod- 
uct, as with special steels, ferroalloys, and zinc, the 
proportion of the total electrically produced has also 
shown a strong upward trend. Thus, in 1937, 46 per- 
cent of the total caustic soda production was made 
electrolytically rather than by the lime-soda process, as 
against only 32 percent in 1921. In the period 1923 
to 1939, crucible and electric steel increased from 1.0 
to 2.0 percent of total steel output, while the proportion 
of zinc electrolytically refined rose from 14 to 23 jier- 
cent. This tendencj' is a product partly of technical 
development but also of the rapid lowering of industrial 
power rates, which fell on the average almost 30 per- 



=» Computed from production data as reported by Hureau of Minos 
and Census of Manufactures. 



178 



National Resources Planning Board 



Table 16. — Distribution 


of intensive power 


consuming plants, by industry groups, 1940 
















Kilowatt-hours consun:ed per 
dollar value of product 


I 
3 

in 

17 

31 

20 

33 

44 

62 

77 

49 

94 

113 

139 

135 

87 

93 

155 

212 

310 

463 


1 




I 

^ 


1 

a 


e 

ra 

1 

11 


n 

111 


S 


■c 
a 

03 

bCb£ 

a a 

11 


•3 
S 

o 


o 

11 
= •§ 

■O 3 
go 


1 

XI 


1 


T3 
C 
ta 

s 

si 


1 

■o 
c 

03 

c 
o 

1 


"ot 

a 

3 

O 

& 

a 

o 

z 


s 

■£ 'c 

s S 


:>.'S 

.11 


i°| 

3 ca a. 
< 


Sis 
ill 

« 

111 


3 
i 

i 


be 

a 
'a 
B 

c 



03 
M 

IS 

3 

03 

a 
•r 

B 

ce 



bt 

a 
a 
1 
2 
S 
& 


3S 

■c C 
c 
— c 

3 

.2 

£.5:3 
*j fc. 


3 

s 
1 

if 




64-72.9 
















1 

3 
5 

7 
7 
12 
13 
13 
11 
8 
3 
5 
4 
9 
10 
2 
8 
7 
13 
19 












1 


56-63.9 


3 
5 
17 
6 
13 
18 
28 
40 
20 
51 
54 
68 
44 
23 
11 
13 
14 
18 
29 
















2 




1 


















4B-5.'i.9 










2 

1 










1 
















■» 


40-)7.9 






















3 

1 


















? 


36-39.9.- 






2 
5 
7 

8 
16 
18 
28 
14 
17 
34 
36 
36 
30 










6 

7 

9 

9 

21 

20 

25 

17 

7 

3 

2 

8 

13 

28 


1 
1 

3' 

I 

2 

3 

2 

3 

3 

8 
14 
14 
43 
56 




















1 


32-35.9-- 




























1 


28-31.9 




















1 


















'f 


24-27.9..- 








1 


...... 

1 

1 


1 




... 


1 














1 

1 


7 


20-23.9.- 






2 




't 


18-19.9 -.- 


























6 
9 




1 


16-17.9 




.— 








1 












14 
19 
27 

57 


"2 

"3 

5 


2 
3 

'J 
2 
6 

5 
10 
15 
13 


? 


14-15.9 




1 




1 






1 

1 


1 


12-13.9 -,, 


1 
6 
6 
16 
38 
60 
64 
87 




1 






9 


10-11.9 - 


1 
I 

...... 

9 
8 


1 

i 

1 
1 

2 

1 


' 2 










11 


9-9.9 


4 


1 

2 
2 
4 
5 
14 


i 
.... 

1 

3 












11 


8-8.9 










1 
2 
1 
2 
1 


15 


7-7.9 




1 
2 

"'"12 


1 
1 
2 

1 


j- 

2 


f 


6-6.9 


30 


5-5.9 . . 


5 


3 


41 


4-4.9 


77 






Total number of plants . - 
Median 


2,147 
7.6 


465 
14.8 


4 

8.0 


284 
5.9 


6 
9.3 


31 
5.3 


12 
12.0 


262 
7.9 




160 
18.0 


24 
5.4 


8 
7.0 


2 

4.5 


180 
13.0 


156 
5.5 


26 
10.0 


7 
5.5 


18 
4.8 


5 
5.8 


3 
4.8 


11 
7.8 


138 
5.3 


38 
7.8 


10 
6.0 


78 
7.2 


229 
5.9 



Soukce: Federal Power Commission, Nalimal Dejaue Power Svrrtv, 19il: special tabulation made for National Ee.'sources Planning Board, Industrial Location Section. 



cent between 1926 and 1940. Thus normal trends, quite 
apart from the exigencies of war, foreshadow an en- 
hanced position for these industries in the American 
scene. 

Within the electroprocess group itself, there is con- 
siderable variation in the locational importance of low- 
cost power. While costs under 1 cent per kilowatt- 
hour are almost a sine qua nan. of profitability for such 
intensive power consumers, the search for extremely 
low power costs is sometimes tempered by the location 
of raw materials and less often by that of markets. 

In the production of aluminum metal by electrolysis 
of fused alumina, cheap hydroelectric power has been 
by far the outstanding locational factor. Before the 
recent expansion in aluminum capacity, the five re- 
duction plants of the Aluminum Company of America 
were located at Niagara Falls and Massena, N. Y. ; 
Alcoa, Tenn. ; Badin, N. C. ; and Vancouver, Wash. 
Cheap water power is determining in suggesting new 
locations in the Pacific Northwest, the Tennessee Val- 
ley, and elsewhere. The great bulk of domestically 
produced artificial abrasives are manufactured at Niag- 
ara Falls. With magnesium, on the other hand, the 
sole plant until very recent years was at Midland, 
Mich., where raw materials were available at low cost 
as byproducts of other processes. In the location of 
new magnesium plants, cheap power stands about on an 
equal footing with availability of materials. Electi-o- 
lytic zinc is produced for the most part in Montana 
and Idaho, where fairly low-cost water power is uvail- 
able close to the mines. The location of one electro- 
lytic refinery at East St. Louis, however, shows the 
pull of raw material deposits in the Joplin area more 
than outweighing somewhat unfavorable power costs. 



A similar balance between the factors of electric energy 
and material supply has been struck in locating the 
calcium carbide and electrolytic caustic soda-chlorine 
industries. In the latter instance the important mar- 
ket of the paper industry has combined with cheap 
power in promoting recent locations in West Virginia, 
AVashington, California, Texas, and Louisiana, in ad- 
dition to the long-established producing center at 
Niagara Falls. 

A more general picture of the location of intensive 
power-consuming plants is afforded through analysis 
of the Federal Power Commission's National Defense 
Power Survey, made early in 1941. The survey cov- 
ered a total of 16,641 plants, with a total energy con- 
sumption in 1940 of 80,049,628,007 kilowatt-hours, or 
about 86 i>ercent of the industrial total. Extractive as 
well as manufacturing industries were included. Of 
the plants surveyed, 11,646 reported, along with other 
information, the energy consumption per dollar A-alue 
of product, which serves as a measure of intensity of 
power use.-' A frequency distribution by industry 
groups of the 2,147 plants reporting over 4 kilowatt- 
hours i^er dollar value is presented in table 16. The 
large number of plants in the food group is accounted 
for by the widely distributed manufactured ice indus- 
try. With this exception, chemicals, paper, and stone, 
clay, and glass are far in the lead in the upper brackets. 

In figure 76, the location of all plants consuming 10 
or more kilowatt-hours per dollar value, and with more 
tlian 2,000,000 kilowatt-hours absolute consumption in 



=^.\ special tabulation of tlie d.Tta, arrayed in descending order of 
kilowatt-hour con.'iumption per dollar value of product in 1940, was 
made by the Federal Power Commission staff for the purposes of this 
study. The anal.vsis in this section of the text, together with table 16 
and figure 7.5, is based on this tabulation. 



Indiitftnal Location and National Resources 



179 




180 



Xational Resources Planning Board 



1940, is mapped together with an indication of con- 
sumption intensity and industry. The map brings out 
in sharp relief a number of characteristic locational 
patterns. Concentration of jjlants in the low-cost 
water power regions — Niagara Falls, the Southern Ap- 
palachians from West Virginia to Northern Alabama, 
the Pacific Northwest, and California — demonstrates al- 
most pure power orientation, with aluminum and other 
electroprocess industries predominant. At the other 
extreme are instances of pure market orientation (ice) 
and pure material orientation (the mining of geo- 
graphically concentrated ores). The chemicals group 
as a whole shows close balance between considerations 
of power, fuels, materials, and mai-kets. In paper and 
compressed gases, material availability dominates lo- 
cational choice, but attention is also given to low-cost 
power. In cement, finallj^, the predominant factors are 
markets and materials, but location is also influenced 
to some extent by relative costs of power and fuels. 

It is evident that low-cost power alone does not suf- 
fice to create an industrial area with any wide degree 
of diversification. The specifically power- oriented in- 
dustries are few in number and limited in character. 
But where low-cost power and electroprocess raw ma- 
terials occur in conjunction, the groundwork exists for 
industrialization on a substantial scale. This combi- 



nation is the key to policy in industrial development 
around the public power projects of the Northwest and 
the Tennessee Valley. 

In addition to its influence on interregional indus- 
trial location, electric power is potentiallj' significant 
for the intraregional distribution of industrj' among 
metropolis, suburb, small city, and rural area. On a 
regional basis, power rates economically related to 
costs will undoubtedly always favor areas with natural 
advantages of water power and cheap fuel. But 
within very wide zones, power costs are strongly modi- 
fied by such factors as the interconnection of steam 
and storage hydro plants into integrated systems, and 
the interconnection of diverse industrial, commercial, 
rural, and residential loads. Improvements in load 
factor and utilization of secondary jDOwer afford sav- 
ings of an order of magnitude considerably greater 
than transmission costs narrowly interpreted. The 
geogi-aphical allocation of savings from large-scale 
interconnections is largely a matter of policy, and it 
may be by no means economically unjustifiable to 
charge uniform rates over an entire interconnected 
area. In so far as differential power costs influence lo- 
cations, therefore, this circumstance places power in a 
strategic position for employment as an instrument of 
po/^itive locational policy. 



CHAPTER 8.— WATER 

By Glenn E. McLaughlin* 



Influence of Water Supply 
on Plant Location 

The locatioiuil importance of water, as of most pro- 
duction requirements, depends on regional differences 
in the quantitj' and quality available to meet varying 
industrial needs. For some industries, water require- 
ments are of great importance, and large areas of the 
country ai-e unsatisfactory for the operations involved 
because of the inability to meet these needs, while the 
selection of a particular site within a favorable area 
often depends on ready access to water supplies. For 
many industries, of course, water requirements are of 
little significance. 

The problem of providing an adequate, economic 
water supply varies widely with the prospective use. 
In some industries, water is needed mainly for cooling 
purposes, and the problem consists chiefly of providing 
large enough quantities. In others, where water is 
used jirimarily for washing or processing materials, 
the major concern is to obtain pure water. '^Vhere 
water is used as a raw material, the supply may have 
to be of a specified mineral content. 

The use of water by one plant may be no bar to reuse 
by another plant on a downstream site. In other cases, 
however, the first mill may liave altered the tempera- 
ture, composition, or other qualities of the water to a 
degree that prohibits certain processes from occupying 
a nearby downstream site, unless water is treated be- 
tween uses. Thus one type of industrial use of water 
may have a loeational effect on other industries. 

Some comnumities have considered water supply an 
important factor in attracting new plants and retaining 
old ones, and have developed water .supply to this end. 
Sucli areas may grant preferential water rates to indus- 
try, and at least one city furnishes water free of charge. 

Industrial Uses of Water 

1. Transportation. — Whei'c inland waterway naviga- 
tion is an imjJortant asset, it may be necessary in time 
of low natural stream flow to maintain navigable 
depths by water released from reservoir storage, and 
by tiie assistance of properly spaced locks and dams. 
These releases may give other benefits, as in diluting 
stream pollution to within tolerable limits; but provi- 
sion fur liiem nuist usually te at the cost of other bene- 
ficial uses of tiic stored water. An example is the allo- 



cation of water stored in the Fort Peck lleservoir, Mon- 
tana, to navigation on the Missouri River instead of to 
irrigation. AVherever the local expansion of industry 
is dependent on water transportation, conflicts may 
easily develop over alternative uses of water. (For a 
discussion of the importance of transportation as a fac- 
tor in industrial location, see Chapter 9 of this report.) 

2. Water foxoer. — Industrial importance of the 
Pacific Northwest, the Tennessee Valley, the Southern 
Piedmont, and many other sections of the couutrj"^, has 
stemmed largely fi'om the availability of the cheap 
hydroelectric power. In these areas the water requii'ed 
for this purpose receives a high priority among alterna- 
tive uses, although it is often possible to combine the 
use of water for power development with that for navi- 
gation improvement in the form of a multipurpose 
water project. (For a full discussion of the effect of 
cheap power in industrial development, see Chapter 7 
of this reiDort.) 

3. Raw materiah. — In some industries, water is an 
important raw material. Water can be broken down 
by electrolysis to produce hydrogen and oxygen; both 
are produced commercially in this manner. In the 
brewing and distilling industries, for example, water 
enters directly into the manufacture of the finished 
product and is one of the major location factors. 
AVhcn used for this purpose it must be free of organ- 
isms likely to produce abnormal fermentation. The 
requisite mineral content of the water depends on the 
t3'pe of beer to be brewed; thus, a hard g}'pseous water 
apparently is most satisfactorj' for the manufacture 
of light beer, whereas soft water is more appropriate 
for dark beers.' The type of beer produced in certain 
localities is related to the water supply: Munich, Pil- 
sen, Monterre;;y% are examples. 

Sea water is a source of supply of certain minerals — 
among them, magnesium and bromine. 

4. Boiler feed. — For general manufacturing purposes 
it is desirable that water should be pure enough to 
avoid the rapid formation of boiler scale. Steam is of 
such general significance in manufacturing that if the 
water supply cannot be made satisfactory for the boiler 
feed except at very high costs, then the locality is 
clcnily unfavorable for any sizeable industrial devel- 
opment. 



•Chief, Industrial Section. National Re.sources Planning Board. 



' If the snline char.ictoristics of the water are not satisfactory, brewera 
sometimes add gypsum and other salts in order to produce the ehemtcaJ 
action on the malt to uivo the desired body and taste. The presence of 
certain salts, mainly masnesium sulphate, is also important In promoting 
a healthy development of yeast. 

181 



182 



National Resources Planning Board 



For steam power plants the availability of satisfac- 
tory water for steam jieneration and condensing is 
likely to be a major consideration in choosing the exact 
location within a wide and generally favorable area. 
The demand for water is sometimes so gi-eat as to 
necessitate the constrnction of storage dams. 

Process steam in large quantities is required in many 
other industries. For example, low pressure steam is 
used in the process of paper digesting and in textile 
finishing. In other industries, steam is used in the 
process to treat or heat the materials; for example, 
evaporating and cooking in the chemical, sugar, and 
food industries. 

5. Condenser water. — In steam-electric plants and in 
industries using steam directly for power, large 
amounts of condensing water are necessary. For ex- 
ample, at the plant of the Corrigan-McKinney Steel 
Co. in Cleveland, water consumption for condensers 
in 1927 approximated 1.5 billion gallons per month.^ 
Lack of adequate condensing water is the main reason 
why cheap power usually cannot be produced in the 
neighborhood of coal mines. In the newer power 
plants, condensers require about 800 tons of water 
per ton of coal consumed. Water for this purpose does 
not have to be pure, since it is usually applied ex- 
ternally in surface condensers to lower the tempera- 
ture. Thus, water obtained either from surface or 
ground sources can be used usually without treatment. 
On the other hand, at some places river water is so 
acid that it eats the boiler and condenser tubes. Under 
such circumstances the water must be treated or tubes 
of noncorrosive metal installed. 

6. Water for other cooling uses. — For the purposes 
of cooling machinery and materials, large quantities 
of chemically satisfactory water are necessary. In 
processes requiring temperature reduction, water is 
often the cheapest cooling medium. Water is thus 
extensively used in the making of iron and steel, in 
the refining of petroleum products, and also in the 
cooling of air and gas compressors and internal com- 
bustion engines. Steel plant operations require the 
handling of a great volume of water each day. Vari- 
ous parts of the furnace and of the rolling equipment 
are cooled continuously with water which needs to be 
of a normal temperature to be effective. For example, 
one handicap suffered by the steel industry at Yoimgs- 
town is the inadequate supply of industrial water; 
during seasons of peak steel production or of drought, 
river water may reach very high temperatures because 
of repeated use.^ Under such circumstances a much 
greater volume of water must be used and this in turn 



requires additional pui'ifying and cooling equipment. 
A large integrated steel plant simply cannot operate 
satisfactorily except where there is an adequate supply 
of water. In the Pittsbui-gh district, a steel plant was 
reported to use 250 million gallons of water per day, 
largely for cooling, whei-eas a nearby city of 25,000 
used only 1 million gallons per day.* Of course, most 
of the steel plant use was not consumptive. 

Water is sometimes used to cool materials directly; 
for example, it is sprayed on byproduct coke when the 
heat is sufficiently advanced in order to arrest com- 
bustion. In many cooling processes, water circulates 
around the equipment ; although air can be used, water 
is usually more satisfactor}-. Its importance in most 
internal combustion engines is such that if cooling 
were not provided, the heat would burn the lubricating 
oil, score the cylinders, and stick the pistons and 
valves. Water for cooling is also important in the 
compi'essing of air and ammonia, in operation of heavy 
machinery, and in metal processes which generate heat 
by turning, drilling, milling, and grinding. The in- 
creasing use of water for refrigeration processes, 
especially air conditioning, has overtaxed the ground 
water supply of some communities. 

Wherever large amounts of water are required for 
cooling and where the supply is not adequate, it is 
necessary to resort to expensive artificial means of re- 
circulating and lowering the temperature, by the use 
of large reservoirs, ponds with spraying devices, and 
cooling towers. 

7. Washing and cleaning. — In concentrating ore and 
preparing it for smelting, water may be the most dif- 
ficult requirement to meet, particularly in the arid 
regions of the West. In the process of ore washing or 
ore dressing, water is forced up-grade against crushed 
ore to separate the finer clay and sand particles. This 
process is used in both iron and nonferrous ores. 
Moreover, in placer mining the water supply is the 
major prerequisite. Water is required also for wash- 
ing and cooling blast furnace gases so that they can 
be used either under boilers or in internal combustion 
engines. Water is required for cooling and washing 
artificial illuminating and fuel gas as well as by- 
products, such as coke oven and blast furnace gas. 
Laundries, of course, are also important users of 
water. 



'Mechanical Engineering, August, 1928, p. 623. 

'The Ohio State University, Engineering Experiment Station Neicn, 
October, 1941, pp. 9-10. 



* Mechanical Engineering, August 1928, pp. 621-622, In 1927 the 
consumption of water h.v another mill in the Pittsburgh district was 
estimated at 32.3 billion gallons distributed as follows in billions of 
gallons : Electric power plant, 2.3 ; hydraulic power, 1.1 ; blowing-engine 
condensers, 3.4 ; byproduct coke ovens, 2.8 ; blast furnaces, 11.0 ; open- 
hearth furnaces, 4.1 ; blooming mill, 2.3 ; tube mills, 2.0 ; seamless tube 
mills, 2.0 ; miscellaneous, 1.3. Ihid. 

A 600-ton blast furnace consumes approximately 17,000 tons of water 
per day. The products include 3,400 tons of gas, which is usually cleaned 
by water. See E. E. Thum, "Iron and Steel," Encyclopedia Britannica, 
14th Ed., p. 653. 



Industrial Location and National. Resources 



183 




Units shown equal parts per milliun. 



Figure 77 



Wliere the supply is not abundant the hirge amounts 
of water used for these cleaning processes may be 
used again after passing it through cooling towers 
and settling basins. 

8. Process tcater. — In some industries water enters 
directly into solutions or mixtures containing the ma- 
terials being processed. In these instances abundant 
local supplies of pure water are indispensable to suc- 
cessful operation and a determining factor in plant 
location in these industries. Examples include sugar 
refining, bleaching and dyeing textiles, silk processing, 
and production of rayon, chemicals, paper, pulp, hides, 
and leather. In paper production, water is employed 
to suspend the cellulose fiber, which is beaten in tlie 
water to form a felted mat or tissue; in another stage 
of the process the materials are boiled in water and 
treated chemically while in suspension. In many in- 
dustries, boiling in water is required in the washing 
and bleaching operations. In certain districts of 
Wisconsin the color of the natural water prevents the 
manufacture of bond paper." 



»F. E. Turneaure and H. L. Russell, PuhUc Water Supplies, 1940, 
p. 185. 



Water containing iron is particularly detrimental in 
textile dyeing and bleaching as well as in the produc- 
tio of paper and pulp. The lack of adequate pure 
water has been a handicap in some localities to the 
expansion of plants producing rayon, cellophane, and 
textile products. The amount of hardness allowable in 
water for industrial use is limited in some operations, 
•particularly in laundries and textile finishing, where 
hardness increases the amount of soap consumed or 
otlierwise complicates the process. 

In sugar processing, water of a good quality is re- 
quired for spraying the crushed cane or beets in order 
to secure the maximum yield of sucrose and in another 
part of the process the naw sugar is dissolved in water 
as a preparation for further refining. In some areas 
the production of glucose sugar from corn products has 
been impracticable because the sulfur in the local 
water renders the product cloudy. 

9. Carriers of indu-itriaJ wastes. — In many indus- 
tries the volume of industrial wastes is a problem in 
plant location. It has been estimated that the total 
capital cost of construction for industrial waste treat- 
ment is between $800,000,000 and $900,000,000 plus an 



184 



National Resources Planning Board 



annual operating cost of 20 to 25 percent of the initiiil 
investment." 

If the ci;st of installing a waste treatment process is 
much in excess of that of the materials recovered, an 
industry will naturally seek a site on a stream into 
which it is allowed to discharge w^aste materials. Oc- 
casionally a site for such a plant can be found near 
the confluence of a clean stream providing process 
water and another one carrying wastes. The problem of 
disposing of waste materials is perhaps greatest in 
paper mills, chemical plants and dye works, bleach- 
eries, soap factories, and steel mills. Even these in- 
dustries, however, have developed means for recover- 
ing wastes so that provision of waste disposal is not 
always of locational significance. On the other hand, 
waste disposal from manufacturing plants may re- 
quire location on a large stream. Furthermore, dis- 
posal of wastes may contaminate the water for a great 
distance downstream and thus influence plant location. 
The Arkansas River in central Arkansas, for example, 
has a high content of dissolved clilorides resulting 
in part from oil-well pollution in Oklahoma and Kansas. 

Industrial waste materials have been divided into 
three classifications: (1) organic, (2) toxic, (3) 
inert.'^ Industries with waste products of the organic 
type include : milk products plants ; beet sugar fac- 
tories; tanneries; canning factories; meat packing 
plants; breweries and distilleries; paper and straw- 
board mills; laundries; textiles and dye works. In 
most areas, regulations require the installation of 
waste treatment plants to remove or neutralize wastes 
of this type. Wastes of the toxic variety occur in 
metal plating, metal manufacturing plants, gas plants, 
chemical plants, coal and other mines. In some states 
recovery or treatment regulations have also applied 
to this category of wastes. Inert wastes which are im- 
portant in the consideration of pollution problems are 
produced in hydraulic and drift mining, saw mills, 
gravel pits and in the refining of some metals. 

10. Fire protection. — Some types of operations re- 
quire the storage of large amounts of water for fire 
2:)rotection. Wherever the process deals with inflam- 
mable materials, plant location is likely to give con- 
siderable emphasis to water supply. 

11. Domestic and commei'cial use and sewage dis- 
posal. — If industrial development occurs in an area 
where there has been little previous urban develop- 
ment, it will necessitate the establishment of a new 
community. Even in an older city, the introduction 



° This estimate is based on tlie volume of production indicated in tlie 
1935 Census of Manufactures. For further information see National 
Resources Committee, Water Pollution in Die United States, 1039, pp. 
52-59. 

' Chemical Industries, August 1941, pp. 170-176. 



of a larger plant may lead to expensive enlargements 
of local water and other utility systems. Water con- 
sumption in industrial operations probably averages 
between 10 and 50 gallons per capita per day in large 
cities, whereas domestic requirements for drinking, 
cooking, washing, and general home use average be- 
tween 20 and 60 gallons per capita per day, and com- 
mercial use from 5 to 10 gallons per capita per day.' 
A larger city is more likely to have a water supply 
adequate for a considerable addition to population than 
is a smaller city. In a smaller community a new pro- 
ducer might have to consider water for domestic and 
commercial as well as industrial use. 

12. Agriculture. — In arid parts of the West the 
reservation of major portions of available water for 
agricultural and domestic use may leave an inadequate 
supply for industrial development. In metropolitan 
areas of the Eocky Mountain region, for example, the 
demands of nearby agricultural areas for water are 
likely to take a large portion of the available supply 
and thus to restrict the expansion of industrial 
production. 

Supply and Quality of Water 

Water can be obtained from either surface or ground 
sources. Usually it is cheaper to tap surface sources, 
yet in some places the construction of upstream stor- 
age dams may be needed to regulate the flow to 
industrial plants. Moreover, in some districts and for 
some processes, surface water has to be treated for 
contamination and discoloration. In many areas, 
ground water is the more dependable source; in some 
places it is the only adequate source. Its provision, 
however, raises problems. Since ground water moves 
very slowly, it often contains a higher proportion of 
dissolved minerals, which makes it unsuitable without 
treatment for cooking, laundering, and some industrial 
purposes. The higher proportion of carbonic acid 
sometimes found in ground water is undesii'able be- 
cause it causes corrosion of metal equipment. Often 
these dissolved minerals must be removed by aeration 
and sedimentation or by treatment with chemicals. 
The primary advantages of ground water are lower 
temperature, at least during the summer, and lack of 
silt. In general, however, ground waters are less 
desirable than surface water because of their high 
mineral content. 

In any event, the characteristics of flow, the types 
and proportions of impurities in the water, and the 
volume available will determine whether an industrial 
plant will find it possible to use the local water supply. 
In arranging for its water supply, a prospective indus- 



' Turneaure and Russell, op. cit., p. 16. 



Industrial Location and National Resources 



185 



try must make allowances for the correlative rights of 
others which could, under present conditions of public 
law and administration, impair the quality or quantity 
of the water supply. For example, (a) continued 
excessive drafts on ground water have in many areas 
caused water shortages for long-established industries, 
and in some coastal areas have drawn in salt water 
which made the water unsuitable for many uses; and 
(6) the legally permitted increase of upstream waste 
discharge has in many areas impaired the quality of 
the process water which originally caused the selection 
of downstream plant sites. In some States, regulatory 
agencies are beginning to zone streams with respect to 
the amount of pollution permitted. The future indus- 
trial development of a river valley then will be influ- 
enced not only by present uses and exercise of upstream 
and downstream rights, but also by those which may 
yet develop. 

In general, the western part of the country is short 
of water. Industries requiring considerable volumes 
of water can be located in only a relatively few dis- 
tricts in the region. It was possible for an integrated 
iron and steel plant to develop at Pueblo, Colo., for 
example, but water supply may set a definite limit on 
expansion at that point. Wliere water is scarce, it can 
often be reused, although additions must continually 
be made to the circulating supply. Although careful 
use of water increases somewhat the potential local 
expansion of industry, it does not remove the restric- 
tive influence of a limited local water supph\ 

Water may become relatively scarce also in eastern 
districts as a result of the local growth of population 
and industry. Industrial and commercial use of water 
may increase much more rapidly than domestic use. 
Thus, the introduction of air conditioning in a few 
large office buildings and hotels or the operations of 
a new paper mill may absorb all available local water 



surplus and preclude further local industrial growth 
until other supplies are tapped. At times, relief can 
be obtained by connection with nearby water systems. 
Some cities have had to go to distant sources to 
obtain supplies of water adequate for expanding local 
needs. Los Angeles, San Francisco, New York City, 
Boston, and Tulsa are examples.^ 

Alternative Uses of Water 

Whenever total water supplies are insufficient to 
supply all desired uses, some selection must be made 
among the various alternatives. Even where supplies 
are abundant this question may be of great importance 
in planning a community's industrial and social future. 
No definite order of importance can be laid down which 
is applicable to all circumstances. Nonconsumptive 
and nonpolluting uses, such as hydroelectric genera- 
tion, recreation, and transportation, are unlikely to 
interfere with other uses. Consmnptive uses — domes- 
tic, agricultural, commercial, and industrial — may be 
directly competitive, and in most arid regions the 
domestic and agricultural uses will be given priority. 
Where extensive use is required for mining operations, 
on the other hand, as in many western communities, 
water may be reserved primarily for this purpose and 
for domestic requirements. Consumptive uses up- 
stream may also interfere with transportation or power 
generation below. Nonconsumptive but polluting uses, 
moreover, may make water unfit not only for domestic 
purposes but also as a habitat for fish. Under these 
circumstances, it is evident that industrial location 
policy must have regard for alternative water uses and 
that optimum water use implies effective planning for 
integration of industrial with other needs. 



» For resulting water rates, see Tennessee Valley Authority, Iniustrial 
Wafer Resources of the Tennessee Valley. Mareb, 1939. pp. 43-46. 



414786 — 43- 



-13 



CHAPTER 9. TRANSPORTATION 

By Edward S. Lynch* 



Introduction 

The peculiar importance of transportation to the 
location of economic activities arises out of the fact 
that location is a matter of spatial consideration and 
transportation costs are the price for overcoming dis- 
tance. It is generally agreed that transportation ex- 
erts a vei-y significant influence on location. Most 
students of the subject have been wont to consider it 
the most important single factor. Some, like Alfred 
Weber, seem to have considered it more important 
than all other factors combined.^ 

Claims that particular regions are favored and others 
unjustly prejudiced by the relationships obtaining be- 
tween transportation rates are perennial. The con- 
troversy that has raged for several years over the 
railroad rates on manufactured products from the 
southeastern part of the country to the Northeast is 
an example. The slow economic development of the 
Intermountain States and the relatively rapid develop- 
ment of States on the Pacific Coast have been attributed 
to a rate structure that favored the latter as against 
the former. Another type of rate structure, it is al- 
leged, would foster the economic development of the 
South and of the Intermountain States. It has fre- 
quently been charged that discriminatory transporta- 
tion rates have fostered the growth of large urban 
centers and that appropriate revision of the rate 
structure would result in a decrease in their size. 

It is the object of this section to indicate the in- 
fluence of transportation on the geographical location 
of economic activity, other things being equal. For 
such matters as differences in labor costs at various 
places, economies of large-scale production, industrial 
pricing policies, and a host of others, discussed else- 
where in this report, combine with transportation 
service and its cost to achieve the locational pattern 
of economic activities. 

Infiuence of Transportation on the 
Exploitation of Natural Resources 

The location of mining, forestry, and agricultural 
activities is bound, of necessity, to the natural resources 
concerned. Which of several soui-ces of raw materials 
is utilized and the extent to which it is utilized depends 

^Consultant, National Resources riannin.i: Board. 
• Theory of the Location of Industry, University of Cliieago Press, 
1929. 

186 



upon several factors, among them the costs of trans- 
portation from the various sources to market. 

Variations in the relative prosperity of mining re- 
gions have frequently resulted from changes in the 
relationships existing among transportation rates 
charged various sources. Development of the Southern 
Appalachian coal fields were long delayed because of 
distance from and resulting high transportation costs 
to major consuming markets. Exhaustion of timber 
stands in West Virginia impelled railroads serving 
that area to offer to transport coal to markets in the 
North at low rates. This action contributed to an 
expansion in coal-mining operations in southern West 
Virginia largely at the expense of Pennsylvania and 
Ohio. The development of the motor truck, which 
caused a change in the relationship between rates on 
long and on short hauls in favor of the latter, has 
also brought about significant shifts in the location of 
coal production. In the late twenties, the area within 
25 or 30 miles of St. Louis, known as the Belleville 
field, became studded with small coal-mine operations, 
which had theretofore been effectively discouraged by 
a railroad freight rate structure that favored shippers 
of higher-grade coals beyond 100 miles to the east of 
St. Louis. In 1938, the major portion of St. Louis' 
coal supply came from the Standard Belleville field, 
most of it by truck.^ 

Variations in the prosperity of agricultural areas as a 
result of changes in transportation rates and services 
are well known. Perishable fruits and vegetables and 
packing-house products are now hauled many hun- 
dreds of miles, whereas 70 years ago they could be 
hauled only a relatively short distance. Relative trans- 
portation charges on potatoes have been imjDortant in- 
fluences in the competitive struggles of producers in 
Maine, Idaho, Michigan, and New York with one an- 
other. The increase in freight rates after the first 
World War is said to have redounded to the advantage 
of New York producers located near major consuming 
markets and to the disadvantage of growers in Idaho 
and Michigan.^ Relative charges for transporting 
feeds and livestock have dictated the degree of special- 

2 Rail shipments of coal into St. Louis have increased greatly since 
April 1940. when an antismoke ordinance practically forced domestic 
consumers to use a better grade of coal. At the same time, the rail- 
roads put in a train-load rate of $2 per ton, against a previous car- 
load rate of $3.05 per ton, from Arkansas mines. 

M-'f. H. S. Gabriel. Index Niiinieis of Freight Rates and Their Rela- 
tion to Agricultural Prices and Production, Bulletin No. 446, Cornell 
University Agricultural Experiment Station, 1925, pp. 31-34. 



Industrial Location and National Resources 



187 



ization by various regions of the country in the pro- 
duction of one or the other. Th^ competition in east- 
ern markets of orange srowers in California with those 
in Florida would have been much less intense if rail- 
roads serving the former producers had not "blank- 
eted" the entire eastern part of the country for rate- 
making purposes. Until recently, transportation 
charges on oranges from Califoi-nia were the same 
to New York City as to Denver, Colo. 

These scattered instances give some indication of 
the importance of transport factors in influencing 
the location of activities which might seem to be 
governed exclusively by natural conditions. 

Influence of Transportation on the 
Location of Manufacturing 

Much greater freedom of choice exists for the loca- 
tion of manufacturing plants than of raw-material 
production. But the location of the latter exercises a 
profound influence upon the geographical distribution 
of manufacturing. Unless significant economies of 
production scale exist or unless particular areas and 
sites are especially favored by relatively low produc- 
tion costs for other reasons — the availability of a low 
wage or of a highly skilled labor force, for example — 
particular manufacturing processes will be located with 
primary reference to the sources of their materials and 
to the markets for their products. 

The question, will processing occur near the source 
of raw materials or near the market for the finished 
product, is relatively easy to answer where but one 
material is used, only one commodity produced, and 
transpoi-tation costs are reflected directly in prices.^ 
The location of production will then depend on the 
relative costs of transporting materials in their un- 
processed and processed states. Fabrication will occur 
near the source of the material if it costs less to trans- 
port the product than the material and near the market 
if the contrary situation exists. 

The attraction of the raw-material source will be 
greater, the greater the weight loss in fabrication.^ It 
is not surprising, therefore, that copper and lead smelt- 
ers and refineries, w^ood-distillation plants, planing 
mills, cotton gins, and beet-sugar refineries are usually 
located very near to the materials which they employ. 
Transportation rates on the finished products could, 
of course, be made sufficiently high, and on the raw 
materials involved sufficiently low, to offset the influ- 
ence of weight loss in manufacture upon location and 
thus to make location near the market more profitable. 

However many materials enter a product, however 
many products are produced jointly from the same 

« Of. below, pp. 190-102. 

• Cf. ch. 6 of this report, "ilateriaU." 



materials, the same principles apply. To the extent 
that one material or one product involves greater cost 
of movement than others, its source or market will 
have a correspondingly greater influence upon location. 
Service differences and differences in capital require- 
ments influenced by transportation enter as qualifying 
factors. 

Service 

Costs of movement include more than the hauling 
charges of transportation agencies and shippers' ex- 
penses in operating their own vehicles. The quality of 
the service rendered is an important element in the 
total transportation cost to producers.^ 
^ Speed is one of the most important qualitative as- 
pects of transportation; in its widest sense, it includes 
not only the actual time in transit, but also the fre- 
quency and dependability of carrier schedules and the 
degree of correlation of transportation with the 
production schedules of producers. 

Goods in transit frequently represent a considei'able 
absorption of working capital, the interest on which is 
one of the costs of transportation. It is, in fact, 
customary for zinc and for electrolytic copper to be 
sold at delivered prices which include interest on the 
value of the product while it is in transit.' Increased 
over-all speed of transportation also reduces storage 
requirements; and as a i-esult interest on the value of 
the goods stored, expenditures for warehouse space, and 
the risks of price declines on inventory are reduced. 

Since the interest cost on goods in transit and in 
storage is sometimes substantial, there is some incentive 
to locate manufacturing processes in proximity to their 
markets, for the value of fabricated products is gen- 
erally greater than that of the materials of which they 
are made. One of the reasons suggested for the rise 
of Buffalo as a flour-milling center after the first 
World War was the saving in transit time on flour 
destined to eastern markets that was thus achieved. 
In earlier years the 3 to 5 weeks in transit on the 
Great Lakes contributed to the requisite aging of the 
flour, but general adoption of the bleaching process 
gave financial significance to time in transit.' The 
influence of the market on the location of manufactur- 
ing is reduced if over-all speed on fabricated products 
is greater than on materials, as is frequently the case. 

« Dr. .lulius r.irmelee writes: "It is impossible to estimate tbc exact 
Faviut;s improved rail efficiency has stimulatrd. It lias been estiraate<T, 
however, that manufacturers, shippers, and dealers, senerally, have- 
reduced their worliinp capital by one- fourth. This reduction alone- 
means millions of dollars of annual savings to them." (77te Modern 
Railwaii. I.onCTnans. Green & Co., New York. 19<0. p. 237.) 

'Cf. Saul Nelson, Price Behavior and Business Policii, Temporary 
National Economic Committee. Monograph No. 1. 1040, p. S3!>. 

■ Cf. Victor O. Pickett and Roland S. Vaile, The Decline of Norlh- 
usestern FlourAtillinn, University of Minnesota Prosa, lO."?.'!, p, 47, 



188 



National Resources Planning Board 



Most commodities are subject to some form of spoil- 
age or breakage. For some, refrigeration is required, 
if tliey are to traverse great distances ; for others, heat- 
ing is essential ; for still others, ventilation is a neces- 
sity. Damage in transit can be reduced if specially 
equipped vehicles are employed. 

These special services are available on all rail and 
many motor routes, but they are costly and the extra 
costs are reflected in the transportation rates charged. 
The processing of perishable materials, therefore, oc- 
curs typically near their sources ; the canning of dried 
fruits and vegetables and the manufacture of certain 
dairy products are examples. Where the final prod- 
uct is perishable, bread for example, manufacture tends 
to be geographically distributed according to the con- 
suming population. 

Rates 

Carriers typically charge rates that rise with the 
progress of fabrication from raw materials to final 
products; in some cases this has been done at the in- 
stance of the Interstate Commerce Commission. The 
result is a tendency for manufacturing to be located 
away from the source of raw materials and close to 
market, unless the weight loss in fabrication is suf- 
ficiently great to offset the difference in rates, or unless 
the service rendered manufactures is so much superior 
to that afforded materials as to offset the tendency. 

In part this rate-making practice rests on the fact 
that "competition in rates among carriers is limited, 
whereas products that are more valuable per unit of 
weight can generally bear higher transportation 
charges and still move. The so-called value-of-service 
principle of rate making used by railroads and adopted 
to some extent by motor carriers would be impracti- 
cable were it not for monopolistic elements. 

The relationship between rates on materials and 
manufactured goods is partially based on differences 
in hauling costs. Transportation of crude oil by 
pipe line, for example, is cheaper than by tank car or 
motor truck. Hence refineries have been located near 
markets or at tidewater, where cargo tankers are 
available to carry the refined products to market at 
relatively low charges. "In 1920, about 51 percent of 
the refinery capacity of the United States was located 
inland and near oil-producing areas, but in January, 
1931, 67.39 was located in coastal areas and near market 
centers, and only 32.7 percent inland near the oil- 
producing centers." ° In general, manufactured goods 
load less heavily than materials, are more liable to loss 

•G. Lloyd Wilson, James M. Herring, and Roland B. Bustler, PuWic 
Vtilitiea Industries, New YorlJ, 1940, pp. 250-252. Development of the 
gasoline pipe line during the past dozen years has checked somewhat 
the tendency of refineries ty locate away from oil-producing areas. 



and damage, and receive more expedited service and 
other service advanteiges; they are, therefore, more 
costly to transport. 

Although the practice of charging rates that progress 
with the stage of fabrication is general, it is by no 
means universal. Wliere higher rates are imposed 
upon materials in the raw than in the finished stage, 
location of manufacturing plants tends to be near the 
source of materials rather than the consuming mar- 
kets. An interesting example is the policj' of rail- 
roads with respect to rates on hogs and packing-house 
products. On shipments east, hogs carry much 
heavier rates than do products obtained from process- 
ing them, and the weight loss in processing is about 25 
or 30 percent. The result of this, along with other 
factors, has been the development of the packing in- 
dustry in the Western Corn Belt." This trend was 
furthered by the development of motor-truck opera- 
tions in the twenties, which resulted in relatively low 
rates on hogs for short hauls.^^ 

The practice of carriers of increasing their charges 
with distance," but at a diminishing rate as distance 
increases, causes total transportation charges to be 
lower if manufacture occurs at the material source or 
at the market than anywhere else, since the sum of two 
short-haul charges is greater than a single long-haul 
charge. Unless, then, processing costs are sufficiently 
lower at some other place to offset its disadvantage in 
transportation costs, fabrication will tend to occur 
either at the source of the material or the market, the 
assumption made in preceding pages. Railroads, how- 
ever, frequently grant fabrication-in-transit privileges, 
permitting a raw material to be stopped for fabrication 
at some place intermediate between its source and ulti- 
mate market, and the product then carried to market 
for substantially the same total charges as if the haul 
had not been interrupted. The in-transit privilege has 
been of great importance in the establishment of flour 
mills and other processing plants in places where they 
could not otherwise be profitably operated. 

Economies of Scale and 
Differential Production Costs 

The extent to which potential economies of large- 
scale production are exploited depends upon the level 
of transportation charges and on the service rendered 
by carriers. Concentration of production in one plant 
or at a single raw-material source in order to achieve 



" Of. Direct Marketing of Hogs. U. S. Department of Agriculture, 
Misc. Pub. No. 222, 1933. pp. 6-7 and 77-87 and passim. 

" Transportation rates on hogs shipped westward are relatively very 
low in comparison to rates on meat products ; packing plants have 
accordingly been located on the Pacific Coast in order to supply that 
market for meat. 

" As noted later, there are numerous exceptions to this principle. 



Industrial Location and National Resources 



189 



economies of large-scale production tends to be greater 
the lower the transportation charges on the materials 
used and on the product to the various markets served. 
The level of transportation charges could be increased 
sufficiently and the service rendered sufficiently de- 
teriorated to make production on a large scale 
unprofitable. 

Similar considerations obtain where a particular 
site affords opportunity for production at especially 
low costs, because of an especially favorable labor situ- 
ation, for example. As already indicated, penetration 
of northern markets by Southern Appalachian coal 
producers was long retarded by high transportation 
costs, despite low labor and other production costs in 
the region. The home market can be preserved to high 
production cost sites by a relatively high level of trans- 
portation charges and relatively inferior service from 
other producing areas. 

Changes in the levels of transportation rates, unac- 
companied by changes in the relationships obtaining 
among individual rates, influence location by increas- 
ing the magnitude of absolute differences between spe- 
cific rates. The trend of the packing industry to the 
Western Corn Belt discussed above was furthered by 
the increase in the spread between the charges for 
hauling hogs and meat products that resulted from the 
general percentage increases in freight rates during 
and after World War I. Equal percentage increases 
in transportation rates also increase the spread between 
long-haul and short-haul charges, thus reducing pro- 
duction-cost advantages held by shippers located more 
distant freightwise from their markets, while equal 
percentage reductions have just the opposite effect. In 
general, then, increases in the levels of transportation 
charges tend to greater decentralization and reductions 
in those levels to localization of production. 

If prices in general change, wliile the level of trans- 
portation rates remains the same, the effect on location 
is the same. With falling prices, transportation be- 
comes more expensive compared to other productive 
factors, and decentralization of industry is fostered. 
Some of the decentralization of industry that typically 
occurs in periods of depression may be attributed to the 
maintenance of freight rates at high levels while prices 
generally are falling. On the other hand, if prices in 
general rise and transportation rates remain unchanged 
or fall, the effect is to increase the concentration of 
industry and the magnitude of trade between areas. 

Although decentralization of production can be 
achieved by making rates so high and service so bad as 
to discourage the use of transportation facilities, a 
thoroughly economical transportation system might 
effect decentralization of another sort. The separation 
of production into numerous stages from raw materials 



to final products, with each stage carried on where 
peculiar labor and other cost advantages dictate, is 
discouraged by high transportation costs, and would 
be stimulated if service were further improved and 
rates reduced. 

Immobility of Production Resources 
and Industrial Location 

Because of relative immobility of resources, changes 
in freight rates may not have so great an immediate 
effect on the location of economic activities as they other- 
wise would have. Moreover, it is very likely that even 
their long-run influence will be modified. Indeed, a 
change in freight rates to and from a particular locality 
will have substantially the same effects on the producers 
located there as would the imposition or removal of a 
sales tax of equal amount. All the difficulties encoun- 
tered by students of public finance in attempting to 
determine the incidence and effects of a sales tax are 
encountered here. 

An increase in freight rates on shipment of a product 
to market or on assembly of the raw materials used — 
the first involving a reduction in net realized price 
and the second an increase in production costs — will 
not usually result in pomplete shut-down by a firm 
operating with a large investment in relatively durable 
and specialized plant and equipment. Unless the cost 
increase or price reduction is so great as to render its 
investment valueless, it can be absorbed and produc- 
tion continued, though probably on a reduced scale, 
until need for replacement of plant and equipment 
arises. Indeed, durable and specialized plant and fa- 
cilities may be regarded in the same light as a raw 
material resource subject to depletion — the material, 
itself, being almost completely -weight-losing as a re- 
sult of depreciation and obsolescence. 

A reduction in freight charged to a competitor lo- 
cated elsewhere, which leads him to lower his price, will 
not usually enable him completely and immediately 
to absorb the market for the goods. The failure of an 
even more rapid advance in the packing industry to 
occur in the Western Corn Belt Area, in view of freight 
rate, wage, and other advantages is attributed to the 
very large and relatively durable investments that had 
already been made in Chicago and eastern cities.''' 

Because labor and capital are not completely mobile 
and because land and other natural resources are fixed 
in their locations, a rise in transportation costs bearing 
immediately upon a particular producer may be 
neither borne in its entirety by him nor passed along 
entirely in the form of higlier prices to his customers. 
It may, for example, be absorbed by sellers of supplies 



'■ Cf. V. S. Department of Agriculture, op. cit., p. IV 



190 



National Resources Planning Board 



to him, themselves in a position to absorb the loss of 
net income involved, without changing their location 
and their production policies. The benefits of a reduc- 
tion in freight rates may also be distributed among 
several factors. Owners of land, especially, are likely 
to benefit by reductions in freight charges and to suffer 
from increases in them. 

Wliere labor tempers its demands for ^^•ages with 
a view to the competitive position of the employer, a 
change in transportation charges to the disadvantage 
of that employer may be partially absorbed by his 
labor force. This is not unlikely to occur even when 
labor is 'organized ; witness the regional differentials 
that persist in wage agreements even between national 
unions and employers. It is very likely to occur when 
labor is unorganized. The major reason for this is the 
fact that the geographic mobility of labor is restricted 
because of expenses of movement, including partial loss 
of investments made in the locality concerned, and 
because of natural psychological resistance to move- 
ment. Labor, in other words, together with all other 
relatively immobile productive factors, including trans- 
portation facilities, participates in the competition of 
the combined resources of one region and those of an- 
other for common markets. Similarly, labor may reap 
the benefits of an improvement in the transportation 
situation. 

As of any given time intimate relationships will 
have been established among producers in a particular 
region and at a particular site. Producers base their 
decisions with respect to location, among other things! 
on the locations of those firms from whom they pur- 
chase materials, and on the locations of those to whom 
they sell. Because reinvestment in various lines of 
activity tends to be made at different periods of time 
and very largely with a view to the existing locational 
structure of suppliers and of markets, the process of 
relocation as a result of a change in freight rates is 
very slow and likely never to be completely achieved. 

Geographic Pricing Policies 
and Transportation " 

Pricing policies in the nontransportation area of the 
economy frequently offset the influence of changes in 
freight rates on location. They may completely neu- 
tralize that influence or simply make it different from 
what the preceding analysis indicates. 

Where competition in price is deliberately avoided, 
it is entirely probable that a reduction in the costs of a 
producer wlio does not "make the j^rice" — who simply 

"Cf. Chapter 18 of this report, "Price Policies.'' 



"meets competition" — will not result in a lowering of 
his price, and that increased costs will not impel him 
to raise his price. Moreover, a reduction in his costs 
will not necessarily result in an extension of his mar- 
ket, nor an increase in his costs in withdrawal from 
part of his market. Changes in freight rates from a 
mill or mine that does not "make the price" will not, 
therefore, affect the delivered price to the market con- 
cerned and so will have no effect on the location of 
firms purchasing its product. They may also have 
no effect on the location of the industry producing the 
goods concerned. The Federal Trade Commission, for 
example, found in the case of cement that "the mill 
whose base price and freight rate made the Chicago 
delivered price in 1927 is located near Chicago. The 
mill's output for that j^ear was more than 9 million bar- 
rels, while Chicago's consumption was about 3,800,000 
barrels. Less than one-third of this consumption was 
supi^lied by this mill, which at the same time shipped 
large quantities long distances on which it realized a 
mill net far below that realized on its Chicago ship- 
ments." ^^ 

An increase in transportation rates from a basing- 
point mill to a market which remains within its price 
territory will result in an increase in price to that 
territory. But it will not necessarily cause a reduc- 
tion of the basing-point mill's share of the sales made 
there nor an increase in the shares obtained by mills 
from which no increase in freight rates has been made. 

Purchasers of steel are sometimes prevented by the 
form of the pricing policy pursued in the industry 
from taking advantage of reduced rates by motor truck 
or by water carrier. On one occasion at least, a steel 
consumer was alleged to have been refused, in effect, 
the privilege of shipping steel pipe in its own barges 
when several steel companies would not sell the pipe 
delivered at the consumer's dock." Other similar cases 
have doubtless arisen at one time or another. Pur- 
chasers of steel with plants on waterways may not 
therefore be able to take full advantage of their loca- 
tions. It is sometimes the custom to add to the base 
price for steel 65 percent of the railroad freight rate 
to destination when purchasers haul steel away in their 
own trucks. 

Attempts have been made by the cement and other 
industries to establish similar policies, discouraging 
the use of ti'uck and water transportation. This prac- 

" Report of the Federal Trade Commission on Price Bases Inquiry, 
1932, p. XIX. 

'" Cf. letter to Mr. Chester R. Roberts, general sales manager of 
the South Chester Tube Co.. from Mr. Gibson, his assistant, Temporary 
National Economic Committee Hearings No. 20, p. 10836 ; also, Saul 
Nelson, op. c'-t.. pp. 306-307 



Industrial Location mid National Resources 



191 



tice has also been established with legislative sanction 
in the bituminous coal industry." 

The fabrication-in-transit privilege sometimes oper- 
ates to distort sj'Stems of "administered" prices. If 
producers of raw or semimanufactured materials are 
accustomed to meeting the i^rices of their competitors, 
regardless of the formal basis of price-fixing, a fabri- 
cator who is accustomed to using a fabrication-in-transit 
privilege sometimes finds it more advantageous to 
purchase from a mill which does not "make" the deliv- 
ered price than from one which does.'' The result in 
many cases is, therefore, to encourage greater concen- 
tration of fabrication owing to use of the fabrication-in- 
transit privilege and to encourage greater sales by a 
fi'eightwise more distant producer, and incidentally to 
increase the amount of cross-haulino; of freight. Ac- 
cording to Professor de Chazeau, "almost 9 months 
before the code [steel code, under the N. R. A.] was 
formulated, a system of quoting delivered prices 
through transit points had been put into practice in 
an attem^jt to correct 'abuses' in the cross-hauling of 
steel."'^ The purpose, obviously, was to eliminate the 
peculiar price advantage accruing to fabricators en- 
joying the fabrication-in-transit privilege. In effect, 
an jittempt was made to preserve to fabricators the 
advantages of the fabrication-in-transit privilege al- 
though eliminating the advantage arising out of its 
combination with the delivered i^rice from a freight- 
wise distant seller. Professor de Chazeau adds that 
the new sj'stem was apparently not "effectively en- 
forced." -" Nor were the attempts made under the steel 
code to enforce a like provision successful. 

" Under the Bituminous Coal Act of 1937. 

" A hypothetical example will serve to bring out the main details : 

r^ n 

N B F M 

-V, B, F, and M are, respectively, a nonbasing point, a basing point, 
the location of a fabricator, and the market for the latter's product. 

The through freight charge from B to M is $10 and from N to U, 
$15, whereas the local freight diarge from B to F is $5 and from 
N to F. $12. 

In etTect, the fabricator collects from the selling mill the rail 
charge from the latter to the point of fabrication. The total cost to 
the fabricator of the material as finally laid down at M is the delivered 
price at F, less the freight charge from the selling mill to F, plus 
the through freight rate from the selling mill to M, plus the charge 
made by the railroad for the fabrication-in-transit privilege. 

The base price at B is $20, and the delivered price at /' is $25, 
whether purchase is made from B or A'. 

If purchase i.s made from B, the total cost to the fabricator is, then. 
$.!0 ($25, minus $5, plus $10) plus fabrication-In-transit. 

If purchase is made from A', the total cost to the fabricator is $:;S 
($25. minus $12, plus $15) plus fabrication in-transit. 

Fabricators at F ol)viou.sly find it advantageous to purchase from .V 
rather than from K, unless the .service advantage of buying from the 
latter is worth more than $2. They also have a transportation ad- 
vantage over fabricators located at B or M, unless the charge for the 
fabrication-In transit privilege Is more than $2. 

"C. R. Uaugherty, M. O. de Chazeau, and S. S. Stratton, The Ero- 
nomirs of the Iron and Steel Industry, McGraw-Hill, New York, 19.17, 
p. 472, footnote 2. 

» Loc. cit. 



While it is true that in some instances changes in 
freight rates may not give rise either immediately or 
in the long run to locational shifts, it is also indubit- 
able that in other cases changes in freight rates are the 
occasion for shifts in the location of buyers or sellers, 
or both, even when prices of the goods concerned do 
not vary precisely with transportation costs. Freight 
rates from a mill to a particular market maj' be in- 
creased by a sufficient amomit to induce tliat mill to 
withdraw from the market, unless it "makes the price" 
there. In numerous cases, producers set limits to the 
amount of freight that they will absorb in their de- 
livered price.-' Where this practice exists, an increase 
in freight rates to a particular market, whicli causes 
the delivered price thus calculated to exceed the pre- 
vailing price there, will impel the producer con- 
cerned to withdraw; unless, of course, his product is 
differentiated from those of competitors, in which case 
there is no "prevailing price," and the result will prob- 
ably be simply some, though not necessarily complete, 
loss of sales. 

Changes in the geographical distribution of many 
industries in which noncompetitive pricing policies are 
pursued are known to all students of the matter. 
While changes in tran.sportation rates do not always 
result in changes in the price structure of an industry, 
they do change the profitability of operations at exist- 
ing locations and, if sufficiently large, will cause some 
shift in location. Such shifts may result from inte- 
gration policies of buyers of the product, who seek 
thereby to escape from the burden of paying monopo- 
listic prices. 

The fact that changes in transportation rates to 
various markets are frequently offset in the delivered 
prices charged by producers suggests the possibility 
that improvements in the service rendered by carriers 
sometimes have a greater influence on the location of 
economic activities than reductions in transportation 
rates. If competition among producers is primarily 
service competition, improvements in the transporta- 
tion service rendered to them are probablj' more effec- 
tive in extending their markets than reductions in rales 
equivalent to the added expense involved in affording 
the improved service. 

Very close analogies can be drawn between the pric- 
ing policies pursued in industry and described else- 
where in this report =- and rate policies established by 
carriers. The "systematic freight equalization," prac- 
ticed in the salt and other industries, is not imlike the 
establishment by railroads and other carriers of rates 
that do not cover full costs in order to permit producers 
to enter a particular market area. The finely balanced 



^ Cf. Saul Nelson, op. cit. pp. 2TS, 296, and passim. 
^ C(. chapter IN of this rejMirt, "I'ricc PoUcics.'' 



192 



National Resources Planning Board 



railroad rate relationships on sugar and other commodi- 
ties that have persisted for many years involve a par- 
tial "absorption of production costs." Until 1934, at 
least, the same f. o. b. price was paid by cottonseed oil 
mills to all producers of cottonseed within specified 
zones, despite the fact that different transportation ex- 
penses were incurred from the various sources. In 
substance, the sources of cottonseed production were 
"grouped" and the same transportation charges made 
to each mill within the zone. Coal mines within zones 
of varying extent are commonly "grouped" by railroads 
and the same charge made from each mine within the 
"group," regardless of its distance from the market 
concerned. Similarly, all forms of transportation fre- 
quently make the same charges for transporting a 
commodity from its place of production to different 
markets at varying distances from it. In other words, 
points of destination are "grouped." with similar re- 
sults so far as purchasers are concerned as those result- 
ing from the zone sj'stem of prices established in many 
industries. Lower charges are often made by carriers 
for long hauls than for short hauls in the same direc- 
tion and included within the former; industries at 
times charge lower prices to some buyers than to others, 
although freight to the former may be carried through 
the place at which the latter are located — and at a 
higher transportation charge.^^ 

The above analogies between transportation rate pol- 
icies and geogi'aphical pricing policies in other indus- 
tries could be multiplied, but enotfgh has been said to 
indicate the probability that the two sets of price sys- 
tems are not independent of each other. During the 
N. R. A., minimum mill prices were established for 
lumber in areas other than the Southeast. In that sec- 
tion delivered prices involving freight absorption were 
established. One commentator has suggested that the 
reason for this difference, demanded by mills in the 
Southeast, was the fact that "freight rate groups [for 
lumber] in this territory (particularly in the Carolinas 
and Virginia) are smaller — thus bringing the effect of 
freight rate differentials more strongly to the attention 
of industry members in this area." ^* It has been sug- 
gested that the pattern of delivered steel prices would 
not be completely changed if the basing-point system 
of prices in the steel industry were outlawed, for car- 
riers would introduce offsetting rate changes.^° The 
practice of making the price of gasoline through a size- 



able area in the Midwest equal to the base price at 
Tulsa, Oklahoma, plus the railroad freight rate to desti- 
nation, had its origin in the fact that the railroad 
freight rate to any particular destination in the Mid- 
west was the same ^ from all points of origin in the 
midcontinent producing area.^" This pricing practice 
continues, although gasoline pipe lines have since been 
constructed and carry gasoline to destination at costs 
which vary with distance and are much lower than the 
railroad rates.-* Indeed it is likely that the transpor- 
tation rate structure and geographical pricing policies 
in certain industries are very intimately related so that 
a change in either one may result in offsetting changes 
in the other. 

Not only do transportation rate policies and geo- 
graphical pricing policies of industry sometimes offset 
each other, they also implement each other in other 
instances. Maintenance of the basing-point system in 
sugar refining would probably be impossible were it 
not for the rate adjustment that has been observed by 
railroads for many years. Even motor carriers some- 
times make rates which enable firms to pursue, without 
change of location, one or another of the pricing poli- 
cies described below. -^ The Interstate Commerce Com- 
mission permitted motor carriers to reduce rates on 
petroleum penetrating oil from Denver to eastern" and 
southeastern points. The product is sold at nationally 
uniform delivered prices and the manufacturer at 
Denver had threatened to establish a branch plant in 
the East unless lower rates were set."" 

The fact that carriers do not vary their charges 
precisely with costs and that the prices of producers 
do not vary precisely with transportation rates to 
various markets indicates the impossibility of inter- 
preting location from a purely geographical point of 
view. In fact, differences in distance are frequently 
ignored by carriers in making their rates, and differ- 
ences in transportation charges sometimes completely 
fail to be reflected in the prices of goods. 

Influence of Transportation 
on Regional Development 

One of the most interesting problems in which the 
effect of transportation costs on location is concerned 



^ Cf. Report of the Federal Trade Oommiasion with Respect to the 
Basing-Point System in the Iron and Steel Industry, 1934, p. 18. 

« Gustav Seidler, Jr., The Control of Geographic Price Relations under 
the Code of Fair Competition, N. R. A. Trade Practice Studies, Work 
Materials No. 86, 1936, p. 108. 

^ J. M. Clark and others. Report of the National Recovery Admin- 
ittration on the Operation of the Basing-Point System <n the Steel 
Industry, 1934. 



" The condition has e.^iisted for two decades. Cf. brief of Mr. Swen- 
rud. Temporary National Economic Committee Hearings No. 15, exhibit 
1206, p. 8707. 

^ Cf. Saul Nelson, op. oit., part II, pp. 273-4. 

'' Apparently, however, this price structure Is gradually breaking 
down as a result of "the development of new oil fields in IllinolB, 
Michigan, and elsewhere." Temporary National Economic Committee 
Hearings No. 15, loc. cit, 

^C(. chapter 18 of this report, "Price Policies." 

"Cf. Western Territory Commodity Rates and Ratings, 17 M. C. C. 
511, 514, 1939. 



Industrial Location a?ul National Resources 



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National Resources Planning Board 



relates to the economic development of the various re- 
gions of the country. 

Regional development has been determined in large 
part by the nature and amount of proved reserves of 
natural resources with which each region has been 
endowed. It has depended, also, on the development of 
industrial, technological, and manufacturing tech- 
niques, which have enhanced the importance of the 
resources of some areas, and lessened the importance 
of those in others. 

Among the most important natural resources are 
natural highways for transportation — oceans and bays, 
navigable rivers and lakes, and a terrain favorable to 
transportation by land — with which some regions have 
been abundantly endowed, and others only scantily 
provided. Transportation facilities that are relatively 
durable and immobile — for example, railways, canals, 
improvements to highways, bridges, airports, harbors, 
and other improvements made on natural waterways — 
may also be regarded in substantially the same light as 
natural resources of the region which they principally 
serve (cf. figures 78-81) . 

Rate structures, originally dictated by the economic 
conditions of the region served, tend to be self- 
perpetuating, for carriers in each region strive to 
protect the traffic that their rate policies have fos- 
tered against encroachments by carriers in other re- 
gions. An instance of this is the refusal of carriers in 
the Northeast to join with southern carriers in the 
quotation of relatively low through rates on north- 
bound manufactured goods, which would thus be 
brought into competition with products of shippers 
on their own lines." Indeed, counsel for the northern 
carriers stated, "Well, we don't put our case on trans- 
portation conditions. We rise or fall by this proposi- 
tion; that in a case of this sort controlling standards 
are those which center from and radiate from rate his- 
tories and rate comparisons." ^^ 

Nevertheless rate structures are subject to continual 
change, although, relative to changes in the underlying 
economic conditions on which they are based, such 
change is slow. Carriers, especially railroads and 
steamship lines, frequentlj' offer especially low rates in 
order to induce new industries to use their facilities; 
the industrial location department plays a very im- 
portant role on many railroads. Public regulatory 
bodies, especially the Interstate Commerce Commission, 
have brought about changes in transportation rate 
structures and thereby have influenced the location of 
economic activities. Furthermore, new agencies of 
transportation, such as the highway carrier and the 

'' Of. state of Alabama et al. v. The Mew York Central R. R. Co., 
et al., 235 I. C. C. 255, 329, 1939. 
"Ibicl., p. 317. 



pipe line, tend to upset traditional systems of rates. 

Although there has been a tendency for common 
carrier truckers to adhere rather closely to the rates 
developed by the railroads, their rate policies have 
shown marked deviations. In New England, motor 
carriers have tried to set their own rate structure with 
little regard for railroad theory.'^ Shippers operating 
their own trucks are likely to vary widely from rail- 
road rate policies on the traffic which they carry. 
Moreover, potential as well as actual operation by ship- 
pers of their own trucks has influenced the rate struc- 
tures of motor carriers and railroads. The influence of 
the market on the location of manufacturing has been 
lessened by greater competitive reductions in rates on 
fabricated products than on raw materials. The truck 
has also contributed largely to greater over-all speed 
of transportation in recent years, and thus has reduced 
the pull of the market. In some instances truckers 
have charged lower rates on eastbound and northbound 
manufactured goods, in order to balance their loads.'* 
The extent to which this may result from limitations 
on the range of commodities which they have author- 
ity to carry is not clear. The petition of producers in 
the Southeast for lower rates on certain manufactured 
goods, however, was granted partially for the reason 
that manufactures would move to the North in any 
case,'^ inasmuch as producers find it often necessary to 
resort to the use of private trucks in order to extend 
their markets. 

Certain tendencies toward greater regional diversifi- 
cation of economic activities may be partially accounted 
for by the relatively greater reductions in charges on 
short hauls than on long hauls. Short-haul trade has 
increased as a result. There are indications that many 
manufacturers formerly selling over rather wide areas 
have found their sales territory contracted.'^ On the 
other hand, relatively low short-haul rates by truck 
have increased the marketing radius of industries for 
which economies of large-scale production have not 
been fully exploited.'' 

Dominance of the Northeast 

The fact of overwhelming significance in interpret- 
ing the influence of transportation service and charges 
on regional development in the United States is the 
great concentration of population and manufacturing 
in the Northeast. The location of about three-fourths 



=" yew England Motor Carrier Rates, 8 M. C. C. 287, 1938. 

=" Cf. Western Territory Commodity Rates and Ratings, 17 M. C. C. 
511, 1939. 

'^ State of Alaiama et al. v. The Neuj York Central R. R. Co. et al., 
235 I. C. C. 255, 327-8, 1939. 

" Cf. A. Hamilton Chute, Marketing Burned Clay Products, Ohio 
State University, Columbus, 1929, pp. 201,220. 

^ Ct. Miriam E. West. Productivity and Employment in Selected 
Industries; Brick and Tile, Works Progress Administration, 1939, pp. 
64-66. 



Industrial Location and National Resources 



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National Resources Planning Board 



of the nation's manufacturing enterprise within 14 
northeastern States provides an extremely favorable 
market for the raw materials produced there, and 
the area is rich in natural resources, especially the 
strategic coal and iron resources so located as to permit 
assembly at relatively low transportation charges. 
Concentration of manufacturing activity in the North- 
east is partially accounted for by the large consuming 
market that the area provides, together with its ac- 
cessibility to the large foreign market in eastern Can- 
ada and Europe. 

Even if the level of transportation rates were no 
lower and service no better in the Northeast than in 
other parts of the country, relatively low transporta- 
tion charges to market would favor raw material pro- 
ducers there in competition with producers elsewhere 
who were also striving for that market. The same 
conclusion is relevant for manufacturers producing for 
the Northeast market. 

There is no question that the level of railroad class 
rates ^' is very much lower in the Northeast than in 
other sections of the country' but a much larger per- 
centage of total freight traffic in the Northeast moves 
on class rates. The Interstate Commerce Commission 
has indicated that class rates set by highway carriers 
for hauls in the Middle Atlantic and East Central 
States are "materially lower" than such rates for com- 
parable distances within New England and within the 
Southeast. As it said, "Such results must be expected, 
because the motor carrier class rates throughout the 
country follow more or less closely the competitive rail 
class rates and the latter reach their lowest level in 
the Middle Atlantic and East Central States." '^ 

The Northeast is also favored by the existence of 
excellent water transportation facilities. Charges for 
transportation on the Great Lakes are very low, for 
example. Moreover, river and canal improvements, 
with consequent low transportation rates, have been 
especially noteworthy in that area. Intraterritorial 
trade is furthered, also, between points to which 
coastal service is available as it is along the Atlantic 
coast. The magnitude of economic activities car- 
ried on in the Northeast is attributable in large part 
to its excellent location with reference to the European 
market, and the excellent harbors and shipping facil- 
ities that dot the Atlantic coast. Moreover, materials 
from the Southeast, Southwest, and the Pacific coast 
areas of the country are obtainable at very low water 
transportation rates — lower in fact than is true of in- 
terior sections of the country which are geographically 
closer — whereas certain kinds of manufactured goods 

»* A class rate is a rate imposed on a category of commodities, while a 
commodity rate relates to a particular commodity rather than to a 
group of goods. 

"Rates over Freight Forwarder, Inc., 4 M. C. 0. 68, 1937. 



are in turn carried by water at relatively low back-haul 
rates to those areas. 

Influence of Transportation 
on Urban Concentration 

Transportation has probably had more influence on 
the relative size of urban communities than on the 
interregional distribution of production since the lat- 
ter has been very largely determined by the relative 
endowments of various regions in natural resources 
and bj' the relative magnitude of their consuming pop- 
ulations. If a particular site enjoys more favorable 
transportation rates on raw materials and on processed 
goods than the localities in the surrounding area, man- 
ufacturing activities will gravitate to it and away 
from the surrounding communities, unless other costs 
of production become sufficiently higher to offset the 
transportation cost advantages. Similarly, more fre- 
quent, more dependable, more convenient and speedier 
service afforded by carriers to a particular site than 
to surrounding areas will attract additional production. 
As already stated, the importance of relatively low 
transportation costs to and from a particular site will 
be greater the greater the economies of large-scale pro- 
duction and other cost advantages. The location of 
productive enterprise at a particular site provides a 
further attraction to industries, which for transporta- 
tion reasons tend to be located at the market.*" All 
large cities and, in fact, medium sized cities as well 
have been favored by good transportation facilities. 

An important factor in the growth of large cities has 
resulted from the superior service and advantageous 
rates afforded by carriers in competition for traffic. 
According to Mr. A. B. Stickney, "Statistics show that 
the entire net increase of population from 1870 to 
1890 — in Illinois, Wisconsin, Iowa, and Minnesota — 
was in cities and towns possessing competitive rates; 
and further, that all the noncompetitive towns and 
villages decreased in population." *^ 

Service 

Significant differences exist in the quality of trans- 
portation services available to various localities. Not 
all localities are directly served by all kinds of trans- 
portation agency. The commercial air routes, for exam- 
ple, afford direct service to fewer than 300 communi- 
ties. The number of gasoline and crude oil pipe line 
terminals is relatively small. Carriage by water is, 
of course, immediately available to relatively few com- 
munities. The Automobile Manufacturers' Associa- 
tion annually reports that more than 40,000 commu- 
nities are without railroad service and dependent upon 
motor- vehicle operations. (Cf. figures 78 and 79.) 

" Cf. ch. 14. 

<> The Rail icay Problem, St. Paul, 1S91, p. 62. 



Industrial Location and National Resources 



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o 

00 






J Sssss |Sess 

SSSSS SS53S 

iiiis|fif 



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National Resources Planning Board 



There is little doubt that large communities have 
better transportation than smaller centers. Shippers 
in very small communities are placed at a disadvantage 
because information concerning transportation sched- 
ules and rates is not always readily available to them, 
especially if there is no local transportation agent. 
The files of the Iowa Commerce Commission disclose 
that almost as much opposition is encountered from 
shippers to the withdrawal of a local railroad agent 
as to the abandonment of a branch. Moreover, in 
large urban centers the chambers of commerce fre- 
quently perform the functions of industrial traffic 
managers for their members. Railroad, common-car- 
rier truck, water carrier, and air freight schedules are 
typically made with a view to the convenience of pro- 
ducers located at major terminals. Greater conven- 
ience and over-all speed of transportation are also 
afforded producers as a result of the more frequent 
schedules operated by carriers competing for traffic be- 
tween large cities. Frequency of schedules results also 
from the very magnitude of the traffic hauled between 
such places. Smaller communities along railway and 
highway routes are frequently bypassed in the interest 
of fast service between large communities. The result 
is a differential advantage in speed and frequency of 
transportation for the large communities. Freight 
forwarders and the Eailway Express Agency also have 
contributed to better service between localities of major 
traffic importance. 

The increase in transportation speed in recent years 
has rendered more profitable the concentration of mer- 
chandising activities in the largest cities, to the dis- 
advantage of even relatively large trading centers. 
In explanation of the decline of warehousing in Minne- 
apolis, Professors Vaile and Nordstrom write, "the 
general improvement in transportation service has 
operated to permit manufacturers to consolidate their 
warehouse stocks at the more important distribution 
centers. The time on carload shipments (between 
Chicago and Minneapolis) has been reduced from 3 
or 4 days to 36 hours. As a result in some lines it is 
no longer necessary to carry stocks of merchandise in 
both Chicago and the Twin Cities." " 

Kates 

Most of the major manufacturing and trading cen- 
ters of the country have ready access to cheap water 
transportation. Boston, New York, Philadelphia, Bal- 
timore, and San Francisco, for example, are located on 
excellent harbors for ocean-going vessels. In addition, 
New York City is especially favored by its location on 
the Hudson River. Chicago, Buffalo, Cleveland, and 

" Public Merchandise ^yarehousing in the Tirin Cities, University of 
Minnesota, Studies in Economics and Business, Bulletin No. 3, 1932, 
p. 40. 



Detroit benefit from the low costs of transportation on 
the Great Lakes. St. Louis owes much of its pros- 
perity to its location at the confluence of the Missis- 
sippi and Missouri Rivers, and the advantages of Pitts- 
burgh for manufacturing arise partially out of a like 
circumstance. Dr. Glenn E. McLaughlin has indicated 
that "about half of the [major manufacturing] areas 
are located on deep water, and many of the remainder 
have access to navigable rivers." *^ Such locations af- 
ford great advantages in the assembly of materials 
for manufacturers over places not so favored. More- 
over, producers and merchants located there are also 
favored in marketing products for which speed is not 
of great importance. 

Because of their desire to divert traffic away from 
water carriers, railroads frequently charge producers 
at ports less than competitors at intermediate places 
inland. Pacific coast cities, situated on or near har- 
bors, are frequently favored by railroads in this 
fashion. In numerous instances, the Interstate Com- 
merce Co,mmission, acting pursuant to law, has per- 
mitted railroads to make such charges. 

The practice of charging less for long hauls than 
for shorter hauls in the same direction and included 
within them is not confined to instances where railways 
and waterways compete for traffic. It is a common 
occurrence also in the competition of railroads with 
one another, with motortrucks or with petroleum pipe 
lines, and of these various agencies with one another 
as well." In some instances at least, truck oper- 
ators maintain that higher rates to intermediate cities 
than to large terminal cities are justified because of 
higher costs entailed in serving the former. In New 
England Motor Carrier Rates*^ it was shown that 
often goods were actually transported through to major 
terminal cities and hauled back to the intermediate 
cities concerned. Moreover, many truck operators 
"handle traffic principally in truckloads between im- 
portant commercial centers only and are thereby able 
to cut rates on such traffic."*' Although the amount 
of air freight traffic is as yet relatively insignificant, 
it is nevertheless of some importance for certain kinds 
of manufactured products and is available only to 
major centers. 



<' Growth of American Manufacturing Areas, University of Pitts- 
burgh, Bureau of Business Research Monographs, No. 7, 1938, p. 13. 

" No provision appears in the Motor Carrier Act of 1935, analogous 
to the so-called Fourth Section of the Interstate Commerce Act, pro- 
hibiting charges that are greater on long hauls than on short hauls 
when the latter are included within the former. The Interstate Com- 
merce Commission can, of course, prohibit such a practice if it finds 
that it results in unjust discrimination against shippers located at 
intermediate cities. Specific prohibition of such practices by water 
carriers subject to regulation by the Commission was included in the 
Transportation Act of 1940. 

« 8 M. C. C. 287, 297, 1938. 

'» Cf. Centra) Territory Motor Carrier Rates, S M. C. C. 233, 253, 1938. 



Industrial Location and National Resources 



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National Resources Planning Board 



Discouragement by the Interstate Commerce Com- 
mission, acting under congressional mandate, of the 
practice of charging more for short than for long hauls 
where the former are included within the latter has 
resulted in another rate-making policy, which also 
tends to attract industry to major centers. Railroads 
commonly make relatively low rates on traffic to and 
from "key" cities, as the Commission calls them, and 
blanket such rates back over an intermediate area of 
greater or lesser extent/' If the intermediate area 
concerned were the same on hauls in all directions, the 
"key" cities would have no advantages over other cities 
in the same area. In fact, however, the "key" cities 
do enjoy a transportation rate advantage over neigh- 
boring cities. A simple illustration will suffice to 
bring out the main details of this system of disparate 
blanketing. 



A DOE B 

Let us assume that (7 is a "key" city and A and B 
are sources of raw materials. D and E are other 
points served by the railroad concerned. On traffic 
from A, charges to all points between D and C, in- 
clusive, are the same, but tliose to E beyond are higher ; 
on traffic from B, charges to all points between C and 
E, inclusive, are the same, but those to D beyond are 
higher. 

It can readily be seen that a manufacturing enter- 
prise that requires raw materials from both A and B 
will find C a more advantageous location, so far as 
assembly costs are concerned, than either D or E. 
Moreover, E is in no more favorable position than 
C, for sales to 5, whereas its position is inferior in 
marketing to .4/ a similar relationship obtains be- 
tween D and C. Thus a system of "blanketing," which 
in every direction favors a "key" city, affords manu- 
facturers located there decided advantages in trans- 
portation charges over competing cities in its territory. 

The position of C would be even more advantageous 
if a number of transportation routes converged on it 
and similar "blankets" were provided on the various 
routes. In fact, such a convergence of routes on a city 
is frequently the occasion for the establishment of 
"key" rates because of competition in marketing and 
purchasing among producers along the various routes. 
The size of urban concentrations enjoying "key" rates 
depends, of course, on the extent of the "blankets" and 
on the amount of trade and manufacture carried on in 
the region in which the city so favored is located. 
Obviously a city of the size of New York could not 
be expected in the Great Plains region. 

" Cf. Weatern Truck Line Class Rates, 164 I. C. C. 1, 208-9, 1930 ; 
and Eastern Class Rate Investigation, 164 I. C. C. 364, 414-15, 1930. 



Blanketing of rates in this fashion is also practiced 
by motor carriers — sometimes over rather long dis- 
tances. The same rate was charged from Winston- 
Salem, N. C, to Greenville, N. C., 188 miles, as from 
the former point to Nashville, Tenn., 645 miles. The 
Commission held that the rate to the latter point was 
unreasonably low.*^ But it has approved of this form 
of rate making by motor carriers in numerous cases.*' 

Even where cities are not favored by "key" rates, 
the policy of charging rates that vary less than in 
proportion to distance also may render advantageous 
the location of manufacturing plants at a city where 
several transportation routes, serving different mate- 
rial sources and different markets, converge, and where 
rates break.^" Manufacturing and trade will tend to 
be located at such a place, to serve the surrounding 
area, if economies of scale exist.^^ 

The creation of rate "zones" has a restrictive effect 
on the size of cities. The old Texas common-point 
system created a very broad area in that State within 
which transportation charges were equalized for traffic 
to and from designated outlying points. As a result, 
a much larger number of trading and manufacturing 
centers were established than would otherwise have 
been the case, and no single urban area was able to 
assmne dominant importance in the State. Although 
the establishment of this zone system of rate-making 
was primarily a result of the peculiar interlacing of 
independently owned railroad routes and the competi- 
tive relationships resulting therefrom, the policy of 
the Texas Railroad Commission in its early days seems 
also to have been a major factor. "It was the idea 
of Judge Reagan, in his time the dominant statesman 
of Texas, that it would be inimical to the welfare of 
the State to have its merchandise distributed from one 
to two great distributing centers." ^^ Prof. D. P. 
Locklin has suggested that the "blanketing of rates to 
and from all points in New England when the points 
of origin or destination were in the West has long had 
a decentralizing effect on industry in New England." *^ 

«Cf. Cotton Clothing and Underwear in the South, 10 M. C. C. 691, 
698. 1938. 

"CI. Central Territory Motor Carrier Rates, 8 M. C. C. 233, 250, 
1938, and New England Motor Carrier Rates, 8 M. C. C. 287, 397, 1938. 

'" A rate-breaking point exists when traffic moves beyond it from 
any direction on a combination of local rates to and from it rather 
than on a lower through rate for the entire distance. It is a "con- 
structive" break in transportation. 

" In-transit privileges may offset the rate advantages enjoyed by 
large cities and may encourage industrial decentralization. The loca- 
tion of cotton compresses in small inland cities in Texas was for 
years encouraged by such means ; but the motortruck has largely 
nullified the privilege in this case and has fostered the location of 
compresses at the ports In that state. 

^' L. G. McPherson, Railroad Freight Rates in Relation to the Industry 
and Commerce of the United States, New York, 1009, p. 93. 

" Economics of Transportation, Business Publications, Inc., Chicago, 
1935, p. 120. 



Industrial Location and National Resources 



201 



Zoning seems to have been much more commonlj' 
followed by railroads in the past. Ex-Senator Hast- 
ings, of New York, has proposed that the country be 
divided into a number of zones for railroad rate-making 
purposes. Zoning on a relatively narrow scale occurs 
by virtue of the railroad policy of extending the same 
rates to all points within the terminal limits of a city, 
which in many cases extend beyond its political bound- 
aries. The result is that, so far as transportation rates 
are concerned, location anywhere within the terminal 
limits is equally advantageous. The relatively ex- 
tensive economic development of the suburbs of Chi- 
cago has been attributed to the fact that the Chicago 
terminal area is rather wide.^* The establishment of 
free pick-up and delivery service by railroads in recent 
years has reduced the influence of cheap transportation 
rates on location in the heart of urban areas, and es- 
tablishment of similar service by water carriers has 
influenced the movement of industry to the suburbs of 
major port cities. 

The Railway Express Agency uses the zone system 
of rate making at the present time. It seems that the 
establishment of rate zones of rather large extent for 
parcel post was partially responsible for the develop- 
ment of large mail-order businesses after 1913. 

Influence of Passenger 
Transportation on Location 

The quality of passenger transportation and its 
cost are also influential in the location of economic 
activities. An important expense in many businesses 
is that incurred for travel by salesmen. Not only the 
actual transportation charges paid, or the costs of 
operating company-owned vehicles, but the time con- 
sumed in travel are all-important. Greater speed of 
transportation increases the number of accounts and 
the size of the sales territory that can be handled by 
a salesman, with reductions in the cost of marketing. 
If there are no offsetting increases in rates, producers 
are in a favorable position to penetrate new markets. 

The establishment of branch plants is facilitated by 
speedy passenger service enabling executives to visit 
them with little loss of time. Commercial air service 
seems to be desired at sites for branch plants in several 
industries, although such problems have been solved in 
other cases by companies purchasing their own 
airplanes." 

" Cf. William N. Mitchell, Trends in Industrial Location in the 
Chicago Region Since liiiO, University of Chicago, Studies in Business 
Administration, vol. IV, 1933, p. 69. 

'^ Recent decisions in the airplane-manufacturing Industry to estab- 
lish branch plants were apparently made partially on the ground that 
key executives could be transported speedily between the main plant 
and the branches. The Douglas Aircraft Corporation, for example, 
maintains "an aerial bus service between the factories to transport Its 



Improvements in passenger transportation and re- 
ductions in its cost also facilitate labor supply. Thus 
low-cost, convenient, and speedy travel by motor ve- 
hicle over improved roads has increased the commuta- 
tion radius of labor. Trends of manufacturing in 
recent years to the suburbs of industrial cities are par- 
tially attributable to this factor. 

Consumers frequently travel to obtain goods and 
services which they require. It has been estimated that 
9.4 percent of total consumer expenditures in 1935-36 
were for travel.'"^ The prosperity of vacation centers 
is very largely dependent on convenient and cheap 
transportation. The motor vehicle and improved roads 
have redounded to the advantage of certain sections 
of the country, northern New England for example, as 
recreation areas, but some other once prosperous re- 
sorts have suffered as a result. 

Great differences exist in the quality of passenger 
service furnished various communities. Air trans- 
portation, for example, is available only to the largest 
centers. Faster passenger-train schedules often ignore 
smaller centers, which are bypassed. On the other 
hand, service differences among nearby communities 
have been largely eliminated as a result of individual 
ownership of motor cars. 

The motor vehicle and the improved highway have 
apparently caused very small villages to lose much of 
their economic usefulness at trading centers. An inves- 
tigation made in 1932 disclosed that in the West Mid- 
Continent, "the present trend of retail furniture trade 
is toward the larger cities" and that "towns of less 
than 7,500 people are relatively less important in 
furniture distribution than in other lines of retailing. 
Until perhaps 5 or 8 j'ears ago, towns as small as 2,500 
people seem to have been able to sell their proportion- 
ate share of furniture." °^ In this connection, the 
passenger automobile has probably been quite as im- 
portant as the motor truck. A recent survey discloses 
that about 10 percent of all passenger cars are used for 
shopping from 8 to 18 miles from home and that 
about 7 percent of them go more than 30 miles from 
home.^* 

Summary 

Transportation is of special importance in the loca- 
tion of economic activities. Both the relationships ob- 

key executives, technicians, and even necessary parts and small ma- 
chinery by air." Industrial Los Angeles County, Los Angeles Chamber 
of ConimtTte, November-December 1940, p. 4. 

*• Cf. National Resources Committee, Consumer Expenditures in the 
United States. 1939. table 7A, pp. 79. 

"Walter Mitchell, Jr., Furniture Distriiution in the West Mid- 
Continent, D. S. Bureau of Foreign and Domestic Commerce, Domestic 
Commerce Series No. 68, 1932, p. 16. 

^ Automobile Manufacturers Association, A FtKtaal Surveti of 
Automobile Usage, Detroit, 1941, p. 30. 



202 



National Resources Planning Board 



taining between specific rates and the level of rates in 
general influence the geographical distribution of vari- 
ous kinds of economic enterprise. Not only are rates 
important in this regard, the service rendered by car- 
riers is also a factor of consequence; time, for example, 
is one of the costs of transportation. 

The relative immobility of productive factors and 
the complex relationships, locational as well as others, 
that constitute the economic system sometimes operate 
to offset the influence of changes in transportation costs 
on location. 

The effects of changes in transportation costs on lo- 
cation are frequently offset, also, by industrial pricing 
policies, which do not fully reflect differences in trans- 
portation costs. In fact, there is some evidence that 
industrial price systems and transportation rate policies 
are not independent of each other; in some cases, 
changes in one set are offset by changes in the other, 



whereas in other instances, the two sets of prices ap- 
parently implement each other — with significant effects 
on location. 

Transportation has probably had more influence on 
the relative size of urban communities than on the in- 
terregional distribution of production. Significant 
differentials, both in rates and in service, have existed 
between cities of various size, with resultant differ- 
ences in the transportation costs involved in doing 
business. Most large industrial cities have been favored 
by excellent transportation facilities and by competi- 
tively depressed rates. 

The quality of passenger transportation and its cost 
are also influential in the location of economic activi- 
ties. The most important locational influence of 
passenger transportation is on the size of urban con- 
centrations and the degree of suburbanization. Great 
differences exist in the quality of passenger service 
available to various commimities. 






CHAPTER 10. MARKETS AND MARKETING 

By Wilbert G. Fritz * 



Liocational patterns of industry reflect in marked 
degi-ee the influence of the flow of commodities through 
the marketing system. This flow between establish- 
ments, unlike that within a manufacturing plant, is 
not subject to rigid direction or control. Each stage 
in the distribution pi'ocess constitutes a market more 
or less closely related geographically and functionally 
to the preceding stage. Markets consist of ultimate 
consumers, or of intermediary organizations that 
handle the commodities either for ultimate consumer use 
or for furtliering production and distribution. Cer- 
tain establishments, such as those engaged in bread 
baking, ice cream production, and newspaper publish- 
ing, are clearly oriented toward ultimate consumers' 
markets. Other establishments, for example, many 
machine shops, steel fabricators, and box manufac- 
turers, are oriented toward intermediate markets, 
which consist of producing or bulk distributing estab- 
lishments. A third class, illustrated by wood pulp, 
aluminum, and leather-goods producers, are less influ- 
enced by markets than by supply of materials, power, 
labor, and economies of large-scale production.^ 

Individual establishments cannot exercise substantial 
control over the location of the demand for their prod- 
ucts but instead must choose locations with an eye oil 
possible outlets. Marketing activity is influential not 
only through its effects on the producing branches of 
industry but also through its own importance as an 
economic activity. Marketing, broadly defined to in- 
clude wholesale and retail trade, transportation and 
communication, produced in 1940 more than one-fifth 
of the national income; wholesale and retail trade alone 
produced about one-seventh of the total income.- By 
comparison the proportion of national income in 1940 
produced by manufacturing was almost one-fourth 
of the total, and that produced by agriculture and 
mining combined was about one-tenth. Gainful work- 
ers in marketing (trade, transportation, and commu- 
nication) in 1930 aggregated approximately one-fifth 
of all gainful workers.' ilarketing activity has been 



•Principal Economist, National Resources Planning Board. 

> National Resources Committee, The Structure of the American Econ- 
omy. Part I. Washington. 193n, pp. 204-69. 

'Milton Gilbert and Dwight B. Yntema. "National Income Exceeds 7G 
Billion Dollars In 1940." Stnrvey of Current Business, June 1941. 
pp. 14-17 ; and N. H. Engle, "Costs and Profits in Marketing," Annats 
of the American Acaiemy of Political and Social Science, May 1940, 
p. 125. 

' Engle, op oit., p. 125 ; and Paul W. Stewart and J. Frederic Dew- 
hurst, Does Distribution Cost Too ifucht The Twentieth Century Fund, 
New York, 1939, pp. 9-11. 



increasing relatively, as is indicated by the fact that 
in 1870 the proportion of gainful workers engaged 
therein was only one-ninth. From 1870 to 1930 the 
number of workers in marketing almost kept pace with 
the ninefold expansion of the physical volume of goods 
produced, whereas the number of workers engaged in 
production increased less than threefold.' 

The organization of marketing ma}' help to deter- 
mine the best locations for industry. Reduction of 
the number of middlemen, for example, would have a 
profound effect because it would disturb the existing 
lines of contact between producers and consumers. A 
change in the type of middlemen would likewise affect 
the locational adjustments, but in most cases to a lesser 
extent. 

In a dynamic society, manufacturing, the branch of 
economic activity of special importance in industrial 
location, and other economic activities as well are 
continually readjusting themselves to market demands. 
These markets, in turn, reflect the combined influence 
of such factors as general marketing organization and 
practices, the nature of the product (e. g., perisha- 
bility or bulkinesg in relation to value), the location 
of the immediate users of the product (whether inter- 
mediaries or ultimate consumers), regional levels of 
income, the state of the arts, consumer tastes and 
habits, and trade barriers at home and abroad. Pro- 
ducers, by their own efforts, can do comparatively 
little to modify these basic factors. Market patterns, 
in other words, are largely shaped by circumstances 
beyond their control. A concern could not expect, for 
example, to build a satisfactory market for industrial 
machinery in an area devoted to agriculture and in 
which the development of urban activity would be 
unlikely. The concern would instead direct its efforts 
toward the areas that have predetermined possibilities. 
Thus, in making locational adjustments, markets are 
accepted primarily as given quantities." A discussion 
of markets as a locational determinant must resolve 
itself accordingly into a study of the ways in which 
underlying factors mold market structures and so 
influence the choice of a location for the individual 
concern. 

This chapter will consider the following factors as 
tlicy relate to location: (1) market patterns; (2) tend- 

' Stewart and Dewhurst, op. cit., pp. 12-13. 

'• This does not mean, of course, that markets are not In turn Influ- 
enced by the efforts of producers. Trade is a result of interaction. 

203 



204 



National Resources Planning Board 



encies in marketing; (3) the flow of goods to markets; 
(4) tlie concentration and dispersion process; (5) the 
relationship of markets to production; (6) tlie rela- 
tionship of buying and selling units; (7) initiative in 
transactions; and (8) the division of business among 



marketing units. 



Market Patterns 



The distribution of retail sales among counties in 
the United States is shown in figure 82. These sales 
show a rather close correspondence to the distribution 
of population. The level of income and the character 
of expenditures influence the pattern. Areas of rela- 
tively high average income naturally have a large 
volume of retail sales per capita. These sales do not, 
however, increase in direct proportion to income, for 
the larger the income the greater the proportion spent 
in other ways than on retail commodity purchases. 
Moreover, the high income areas usually have a net 
outflow of capital More detailed data than those pre- 
sented for counties in figure 82 indicate that retail sales 
usually increase more than proportionally to the size 
of the trading center. Although this accelerated rise 
reflects in part higher living costs in the larger centers, 
it also indicates greater pulling power of trade. 
Within any given area, however, the attraction of 
competing centers must also be taken into account. A 
town located in a large area with no strong competing 
centers will become the dominant center for the area. 
IMany agricultural shopping centers are of this type 
and have a relatively high proportion of the local 
population engaged in trade. Except for mail-order 
retail sales, the retail area is limited by the incon- 
venience and cost of traveling to outside market cen- 
ters. Generally, transportation is better to the large 
centers than to the small ones, although congestion 
may be a deterrent to development, especially in the 
central business districts of large cities. The spread 
of automobile transportation has widened greatly the 
retail areas for centers that can offer special induce- 
ments of price or variety.'^ 

The geographic spread of individual retail markets 
is so narrow that intra-area concentration is not so 
important to location of industry as the distribution 
among areas. Since a manufacturing plant usually 
distributes to a large number of individual retail mar- 
kets, it would seldom change its location in response 
to a shift of retailing within any one of these markets. 
Its location may be determined by the relative size of 
areas but little if any by the interior pattern of each 
area. 



• Horace Secrist, The 'Widening Retail Marlcet, Bureau of Business 
Research, Northwestern University, Chicago, 1926. 



Wholesale trade is more concentrated geographically 
than retail trade (fig. 83). States with a dense popula- 
tion have a disprojDortionately large share of whole- 
saling as a rule. Among urban centers the gains in 
the importance of wholesale trade have been more 
rapid than gains in population. In 1989 New York 
City had 23 percent of the total wholesale sales of 
the country, but only five and one-half percent of the 
population. Chicago had seven and one-half percent 
of the sales but only two and one-half percent of the 
population. It should be remembered, however, that 
some wholesale trading takes j^lace without any physi- 
cal flow of goods through the hands of the wholesalers. 
The data on wholesaling undoubtedly exaggerate the 
concentration in physical flow. 

The distribution of wholesale sales differs consider- 
ably from the distribution of population (table 1). 
Only 10 States, including the District of Columbia, 
have a relative wholesale sales density greater than the 
population density. They are: Massachusetts, New 
York, Delaware, and the District of Columbia along 
the Atlantic seaboard; Illinois, Miimesota, Nebraska, 
and Missouri on the western side of the manufacturing 
belt; and California and Washington on the Pacific 
coast. All of these States are either along the sea- 
board, where foreign trade may have an influence, or 
in the transition zone between the manufacturing belt 
and the western half of the United States. The Dis- 
trict of Columbia is an exceptional case owing to its 
lack of rural population. Only 6 States (New York, 
Illinois, California, Missouri, Massachusetts, and Min- 
nesota) have a density of wholesale sales much above 
the average. New York State alone has 26.25 percent 
of the Nation's wholesale sales, as compared with 10.24 
percent of the population. 

The relative distributions of retail and wholesale 
sales; of the value of manufactures, minerals, and 
agricultural production; and of population and land 
area among States are shown in table 1. Coefficients 
of geographic linkage for pairs of items are shown in 
table 2 in the order of decreasing coincidence of rela- 
tionship by States.' The highest coefficient among the 
series compared was 88.89, for retail sales and popu- 
lation ; and the lowest was 42.32 percent, for the value 

' Perfect coincidence in location among the States would be repre- 
sented by 100 percent. To attain this level States not only would 
h.ive to rank in the samp order for tlie two items compared but also would 
require exact agreement in the percentage of the national total for each 
pair of items. Complete disagreement, represented by a zero coefficient, 
would mean that each State having a positive figure for one item would 
have zero for the other. In actual practice the distribution of com- 
parative factors is more likely to approach complete agreement than 
complete disagreement. A zero coefficient for the relative distribution 
of land area and manufacturing or population and manufacturing, for 
example, is an impossibility, because area and population must be dis- 
tributed to some extent where manufacturing is located. Refer to 
chapter 5 for other applications of this measure. 



Industrial Location and National Resources 



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206 

Table 2. — Degree of similarity of distribution among States of 
sales, production, population, and land area, 1939 

[Value dats used, except for population and area] 

Rank in 
, , KcuKiaimii; similarity 

Items compared ' linkaee i of 

distribution 



Petail sales and population - 

Wholesale sales and retail sales... 

Manufactures and population 

Population and agriculture 

Wholesale sales and population.-. 
Manufactures and wholesale sales 

Agriculture and area 

Manufactures and agriculture 

Population and area 

Minerals and area.. 

Minerals and population... 

Ketail sales and area- 

Manufactures and minerals 

Wholesale sales and area. 

Manufactures and area 




10 

n 

12 
13 
14 
15 



Source: Data in table 1. 

' Item with the more concentrated distribution listed first. 

" A coefficient of 100 percent indicates complete agreement in the distributions, 
and zero, complete disagreement. Calculation of the first coeflScient (88.9), for 
example, is as follows: Retail sales and population among States are each expressed 
as a percentage of the national total; diflerences in the percentages for each State 
are calculated, and the sum of the positive diflerences is subtracted from 100 
percent. 

of manufactures and area. The array is significant, 
showing as it does a close correlation of consumer mar- 
kets with population at the one extreme and at the 
other extreme a geographic concentration of manufac- 
turing greater than that of population, retail sales, 
wholesale sales, agricultural production, or value of 
mine output. In other words, the forces of concen- 
tration are stronger for manufacturing than for any 
other factor. Wholesale sales, however, show almost 
as much concentration as manufacturing, and retail 
sales somewhat less than wholesale sales. On tlie other 
hand, wholesaling is more closely associated geograph- 
ically with retailing than with manufacturing. Going 
back a step farther in the marketing sequence, it is 
interesting to note that the distribution by States of 
the value of manufactures corresponds much more to 
that of the value of agricultural production than to 
that of the value of mineral production, but in both 
cases the degree of agreement is relatively low, and 
some of the production, notably of fruits, vegetables, 
dairy products, poultry, coal, and stone, is not always 
used in manufactures. 

Certain limitations on these measures of geographic 
linkage affect interpretations of industrial location. 
In the first place, the measures do not reflect cause and 
effect, but merely similarity of location by States. The 
location of two industries in the same State may be due 
to: (1) direct linkage, (2) attraction by a common or 
related factor, or (3) coincidence without causal con- 
nection. Generally, the degree of geographic relation- 
ship is a more trustworthy interpretation of the meas- 
ures than linkage or lack of linkage, since it is seldom 
possible to attribute geographic association solely to a 
single tie-up of two industries, and, on the other hand. 



National Resources Plamiing Board 

common causes are almost always present, although 
their influence may be very remote. Retail markets, 
for example, exert at least some locational pull on 
industries that specialize in capital goods. Second, the 
measures depend on whether the elements compared are 
within or without given States. It makes no difference 
whatever in the coefficient whether industries, or other 
factors being compared, are in neighboring States (the 
locations in fact may be at adjoining sites) or in States 
2,000 miles apart. Fortunately, State data will usually 
catch a significant share of the associated locations. 
Third, State boundaries are not logical economic boun- 
daries for the study of location. This deficiency may 
seriously mar the measurements in the compact indus- 
trial areas which straddle State lines. Of the 96 metro- 
politan districts defined by the Bureau of the Census 
of 1930, 23 were interstate, and among these were the 
three largest districts. New York, Chicago, and Phila- 
delphia.' Fourth, value data are used in this compari- 
son for all economic items, that is, all the items for 
land area and population. Locational connections may 
be determined more by such factors as weight, bulk, or 
perishability, than by the value of the product. Al- 
though transportation rate structures are partly ad- 
justed to the value of products, the correspondence is 
extremely rough. In general, rates decrease less pro- 
portionately than weight or bulk per unit of value 
increases. Consequently, heavy or large space-using 
commodities influence location more than the value 
data reflect. This difference is canceled to some extent 
by the increased outlays for handling and packaging 
usually required for high-value commodities. Fifth, 
a comparison of broad items such as population, area, 
total value of manufactures, and total value of retail 
and of wholesale sales, gives only an over- all view and 
lacks the detail necessary for critical analysis of causa- 
tion. Food retailing is usually restricted to a market 
of exceptionally short radius, whereas retail markets 
for furniture or expensive style goods may cover wide 
areas, especially where a major center offers strong 
attractions. The wholesaling of consimiers' goods un- 
doubtedly would be located closer to retailing and con- 
.suming populations than wholesaling of producers' 
goods. Location of agricultural production close to 
urban centers is encouraged by local demands for fresh 
products, such as dairy products, eggs, poultry, fruit, 
and vegetables, which may have little, if any, relation- 
ship to or effect on manufacturing. The distribution 
of the value of mineral output is substantially affected 
by petroleum, natural gas, or coal in Texas, Pennsyl- 
vania, California, West Virginia, Oklahoma, Illinois, 
and Louisiana. The transportability and extent of in- 



* National Resources Committee. Our Cities — Their Role in the .Ya- 
tional Economy, Washington, D. C, 1937, map facing p. 66. 



Industrial Location and National Resources 



207 








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208 

dustrial use of these fuels shows wide variability not 
only among the types but also within the types, depend- 
ing on the shipping medium available. 

An attempt to weigh these qualifications fully in 
this chapter would go beyond the scope of a general 
survey of markets as a factor in location. Because 
of the manifold relationships involved among location 
factors, these special aspects are not exclusively asso- 
ciated with markets. They have, therefore, beei\ con- 
' sidered extensively in conjunction with resources, 
materials, transjwrtation, and other major forces in 
location. The more important direct influences of 
markets and marketing will now be considered. 

Tendencies in Marketing 

Markets are influential in location of industry 
through their relationship to the physical requirements 
of commodity distribution and to the organization for 
meeting those requirements. Wlien town markets and 
public auctions were relatively more important than 
they are at the present time, production patterns 
showed a marked orientation about those markets. 
With the early development of the factory system, 
itinerant traders, general stores, and wholesale con- 
cerns became the chief marketing agencies. 

Notable recent tendencies of the economy have been 
the stratification of markets and the fixing of prices 
by administrative action.^ The quantity of commod- 
ities supplied or demanded is subject to a larger meas- 
ure of administrative control. This change reflects 
partly a shift from an agricultural economy in which 
output depends much on the vicissitudes of nature to an 
industrial economy in which tempting opportunities for 
control are presented. 

The shifting and reallocation of joint or overhead 
costs may yield most unusual price and market pat- 
terns. Blanketing of prices is commonly used as a 
device for extending the market of a single establish- 
ment over a wide area. Extreme examples of this 
policy are found in the drug, cosmetic, jewelry, grocery 
specialty, and chewing gum industries in which the 
product of one or two plants may be sold nationally 
at a uniform price. These commodities are all of high 
value in relation to bulk or weight, but less striking 
examples exist among the lower-value commodities. 
Under a system of blanket prices, a plant may even 
sacrifice most of its home market for more distant 
markets, as has been true of certain establishments in 
the rubber-tire industry. 

Data are not available to show the flow of commod- 
ities among small economic areas, but those based on 

» For a discussion of inflexible administered prices, see Gardiner C. 
Means, Industrial Prices and Their Relative Inflexibility, Senate Docu- 
ment No. 13, 74th Cong., 1st sess., Januar